4 - 7 minute read
Bitcoin (BTC) remained stagnant at $29,000 at the Wall Street open on April 27, as the United States GDP growth missed expectations. The largest cryptocurrency had liquidated over $300 million in long and short positions after a snap correction over claims that Mt. Gox and U.S. government bitcoins had left their wallets. A subsequent rebound rescued some of the losses, but $30,000 remained out of reach as macro data failed to offer a suitable catalyst.
According to Cointelegraph Markets Pro and TradingView, BTC/USD was once again stagnant after flash volatility the day prior. This came in the form of GDP growth, which at 1.1% fell far short of predictions. Growth expectations are falling fast, said financial commentator Tedtalksmacro. Gold bug Peter Schiff, chief economist and global strategist at Europac, predicted that inflation would endure at the hands of the Federal Reserve, which next week is due to decide on the next changes in interest rates.
“The Fed has already lost its war against inflation. Inflation won and the U.S. economy lost. The Fed’s next move will be to ‘rescue’ the economy by creating even more inflation,” Schiff summarized. Market expectations for a 0.25% rate hike in May remained unchanged versus the start of the week as a result of the GDP data, according to CME Group’s FedWatch Tool.
Turning to Bitcoin, traders’ BTC price targets for the short term were decidedly conservative. Michaël van de Poppe, founder and CEO of trading firm Eight, highlighted upside and downside levels close to spot price. “Ultra nasty correction on Bitcoin, causing a chain reaction on altcoins too. Levels are quite clear, as Bitcoin is still at $29,000. Needs to hold $28,200 for potential longs. Breaking and flipping $29,200 is continuation towards the highs,” he told Twitter followers.
“The Fed has already lost its war against inflation. Inflation won and the U.S. economy lost. The Fed’s next move will be to ‘rescue’ the economy by creating even more inflation.”
Daan Crypto Trades, meanwhile, noted that BTC/USD had practically come full circle in 24 hours, with leverage flushed from the system. “Yesterday we saw some massive squeezes towards both sides, completely flushing out all the high leverage. Since then, the price is about where it was before the first short squeeze but open interest has not come close to recovering. Low leverage currently. Slight spot premium,” he commented alongside an explanatory chart.
US economy is losing steam: The US GDP grew 1.1% in Q1 2023 ann, slower than the expected 1.9% & slower than previous quarter (2.6%). The main drag came from significantly lower inventory accumulation, while private consumption remained strong. pic.twitter.com/ezpuHeJuNC
— Holger Zschaepitz (@Schuldensuehner) April 27, 2023
Bitcoin remains stagnant at $29,000 following a snap correction over claims that Mt. Gox and U.S. government bitcoins had left their wallets. While a subsequent rebound rescued some of the losses, $30,000 remained out of reach as macro data failed to offer a suitable catalyst. Traders’ BTC price targets for the short term were decidedly conservative, with upside and downside levels close to spot price. Low leverage is currently present with a slight spot premium, and traders should conduct their own research when making decisions.
The Bottom Line
Despite a slight recovery, Bitcoin’s stagnant position shows that traders remain cautious, and the Federal Reserve’s upcoming decision may further impact the cryptocurrency’s price. Traders should keep a close eye on market expectations and inflation, and conduct thorough research before making investment decisions.
