Bitcoin (BTC) is trying to hold steady at $105,000 as the stock market opens on January 30. This comes after disappointing news about the U.S. economy.
The latest data shows that the Q4 GDP growth was only 2.3%, falling short of the expected 2.5%. This news has caught the attention of many in the crypto world.
According to Cointelegraph Markets Pro and TradingView, BTC is showing some strength today, up 2%. Crypto trader Michaël van de Poppe pointed out that yields and the dollar both dropped. He also noted that Ethereum (ETH) is doing better than Bitcoin, and altcoins are on the rise. He called the GDP report a “big miss” and suggested that the market dynamics are shifting.
The S&P 500 and Nasdaq Composite opened about 0.5% higher. Meanwhile, the U.S. dollar index (DXY) quickly fell to 107.5.
Popular commentator Seth shared on X that he predicted the GDP would decline. He believes this is a reason to lower interest rates to boost the economy.
This news puts more pressure on the Federal Reserve. Just the day before, they decided against cutting interest rates, despite calls from President Trump. Current estimates from CME Group’s FedWatch Tool show only an 18% chance of a rate cut at the Fed’s next meeting in March.
In addition, the reports on jobless claims came in lower than expected. This could give the Fed more reason to keep rates higher for a longer time.
Trader Skew mentioned that the focus will now shift to consumption growth and prices, with the Personal Consumption Expenditures (PCE) Index numbers set to be released on January 31.
When it comes to Bitcoin, Skew expressed a bit of optimism after weeks of sideways movement. He noted that the current price around $105,000 indicates a recovery from earlier losses.
He emphasized the importance of following the established trend. If BTC/USD breaks out, it could also benefit altcoins.
Another trader, Anbessa, described the recent price movement as “textbook.” He pointed out that the next key level to watch is $106.5K. If Bitcoin can stay above this level, it would send a strong signal according to the 4-hour chart.