US economic data paints a positive landscape for Bitcoin, experts say

US economic data suggests positive prospects for Bitcoin, according to experts. The quarterly rise in Gross Domestic Product (GDP) met expectations, while the Core Personal Consumption Expenditures (PCE) inflation fell in line with analysts’ predictions. The jobless claims also presented a mixed picture, with initial claims coming in below estimates and continuing claims exceeding expectations. These factors are seen as indicators of potential economic cooling and could drive increased interest in Bitcoin as an alternative investment during market slowdowns. The stable GDP growth is perceived as a sign of stability, reducing the need for investors to move capital out of riskier assets. However, higher continuing jobless claims introduce uncertainty and may temper investor confidence. The slightly better initial job claims indicate economic stability or neutrality, which is generally positive for the crypto space. The US economy’s slowdown and high interest rates could prompt the Federal Reserve to consider cutting rates to bolster the economy. The current uncertainty could affect the inflows of spot Bitcoin exchange-traded funds (ETFs) as investors seek safe-haven assets over risk assets. Additionally, historical data suggests that Bitcoin has typically shown a negative correlation with equities during economic downturns or periods of uncertainty, which could strengthen its position as equities weaken. The anticipated resumption of the bull market and the upcoming launch of Ethereum ETFs are seen as important bullish catalysts. Looking ahead, investors should monitor volatility in both traditional markets and crypto, as well as regulatory developments and macroeconomic policies, which will shape market dynamics. The Fed’s statements and its stance on rate cuts remain crucial factors to watch.