US Economic Data Supports Bitcoin Above $64,500

As of the time this article was prepared, Bitcoin $0.000056 is trading above $64,500, with recent US economic data providing supportive indicators for cryptocurrencies. The significance of data concerning employment and economic growth has increased. While the Federal Reserve lowers interest rates, it is crucial to avoid a recession like in previous cycles; otherwise, substantial declines in stocks and cryptocurrencies may occur. What direction do the latest figures indicate?

US Data and Cryptocurrency

GDP and unemployment claims data were released simultaneously. The data is not significantly misaligned with expectations. The US GDP remained consistent at 3%, while the expectation was 2.9%, which somewhat alleviates concerns about economic contraction. Unemployment claims were reported at 218,000, with the previous figure revised upward to 222,000. This resulted in the latest figure falling short of the previous one and did not exceed the expected level of 223,400.

Continuing unemployment claims remained above expectations. The reported figure was 1.834 million, while the expectation was 1.828 million. The continuing unemployment claims that exceeded the previously reported number indicate that the Fed may need to pause its interest rate cuts.

Following the latest data, the likelihood of a 50 basis point cut during the Fed’s meeting on November 7 has become predominant, rising to 63% with support from recent comments by Fed members.