Following recent announcements from the Federal Reserve, Bitcoin 
$77,420 has climbed back to the $105,000 level, while altcoins remain quiet. Today, two significant economic indicators were anticipated: the interest rate decision from the European Central Bank (ECB) and key statistics from the United States. The focus now shifts to the outcomes of these data releases.
US and ECB Data Insights
The European Central Bank has decided to reduce interest rates by 25 basis points. Concerns about global inflation had previously led to speculation that the ECB might pause its rate cuts. However, in today’s announcement, despite the economy facing headwinds, rising real incomes and the waning effects of restrictive monetary policy are expected to support a demand recovery over time.
While the ECB stated that the effects of past interest rate hikes continue, investors are predicting another 70 basis points reduction this year. In the US, data on initial jobless claims was released alongside “advance” estimates for quarterly Gross Domestic Product (GDP) growth. The expected growth figure was 2.6%, down from a previous 3.1%, with the announced figure coming in at 2.3%. This indicates potential for revisions in the second and final estimates.
Growth has fallen below expectations, which may be acceptable as leading signals for a reversal in Fed’s tight monetary policy. The deceleration in growth could facilitate quicker rate cuts. However, the reported 207,000 initial jobless claims, instead of the anticipated 225,000, reflect strength in employment, indicating that the Fed may act more rapidly due to weakening in the labor market.
