The United States announced yesterday that the country’s Gross Domestic Product (GDP) for the first quarter reached only 1.6%, significantly lower than the economists’ expected 2.5% and a decline from the previous quarter’s 3.4%.
The annual growth rate of the Personal Consumption Expenditures (PCE) Price Index, however, reached 3.4%, marking the highest quarterly increase in a year. The core PCE, which excludes food and energy, also saw a high annual growth rate of 3.7%, once again raising concerns about inflation.
The release of these figures has sparked panic among investors about the economic downturn and stagnant inflation, resulting in a recent decline in the three major US indices and a sharp drop in US bond prices. However, Bitcoin and Ethereum have seen a slight increase.
The Federal Reserve will announce its interest rate decision next week (5/1), and it is widely expected to maintain high rates. According to the CME Group’s FedWatch Index, investors’ expectations for a rate cut have been pushed back to September or later, and there may only be one rate cut left for this year.
Bitcoin has been consolidating within a range recently, showing a clear head and shoulders pattern. It is worth noting whether it will fall below the 58,441 quarterly line, while the resistance above is focused on the 67,000 level that has failed to hold multiple times.
The Hong Kong-listed Bitcoin and Ethereum spot ETFs will begin trading on 4/30. According to Bloomberg’s latest analysis and discussion, the issuance volume may reach $1 billion within the next two years. It will be interesting to observe whether it can provide upward momentum for the prices of BTC and ETH.
(Translation of news article without any additional content)