Bitcoin remained resilient at $105,000 during the Wall Street open on Jan. 30, as the latest U.S. GDP figures for Q4 fell short of projections, sparking renewed optimism in the crypto market.
Market data from TradingView showed BTC/USD climbing 2% on the day, maintaining its upward momentum despite macroeconomic uncertainty.
The U.S. economy’s Q4 GDP growth came in at 2.3%, missing the anticipated 2.5% mark. Reacting to the data, prominent trader and analyst Michaël van de Poppe noted on X that the immediate response saw Treasury yields and the U.S. dollar index (DXY) decline, while Ethereum and altcoins surged. Calling it a “big miss,” he suggested that the macroeconomic landscape was shifting in favor of risk assets like Bitcoin.
Investor Focus Shifts to PCE Inflation Data
Following the GDP disappointment, U.S. equity markets opened with gains, with the S&P 500 and Nasdaq Composite both advancing around 0.5%. Meanwhile, the DXY slipped to 107.5 in a swift reaction to the data.
Crypto commentator Seth weighed in on the situation, emphasizing the need for lower interest rates. “This is why I have been pushing for more stimulus,” he posted on X, predicting further economic slowdowns.
The Federal Reserve remains in the spotlight, having maintained current interest rates despite external pressure, including from former President Donald Trump. According to CME Group’s FedWatch Tool, the probability of a rate cut at the next Fed meeting in March remains low, at just 18%.
Further economic insights came from the latest jobless claims report, which indicated fewer-than-expected claims, potentially reinforcing the Fed’s stance on keeping rates elevated.
Looking ahead, market watchers now turn their attention to the upcoming Personal Consumption Expenditures (PCE) Index, scheduled for release on Jan. 31, which could further influence the Fed’s policy decisions.
Bitcoin Eyes Key Breakout Level
Despite weeks of sideways movement, Bitcoin’s latest price action suggests a potential breakout.
“BTC is now back at $105K, effectively erasing losses from earlier in the week,” noted trader Skew. He emphasized that the next move depends on whether Bitcoin continues following its current trend.
Skew also suggested that if Bitcoin maintains its strength, altcoins could see renewed momentum. “A strong BTC could revive the market, especially given the opportunities among undervalued altcoins with solid narratives,” he added.
Fellow trader Anbessa described Bitcoin’s recent move as “textbook” technical behavior.
“Key level to reclaim is $106.5K. If Bitcoin consolidates above this, it’s a strong bullish signal,” he explained, highlighting the significance of the next resistance level.
With macroeconomic shifts in play and Bitcoin maintaining its footing, traders are watching closely for signs of the next major price movement.
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