Bitcoin traders exhibited resilience in the face of downward pressure as BTC prices mirrored a broader decline in stocks following unexpected U.S. macroeconomic indicators.
The price of Bitcoin dipped below $62,000 during the Wall Street opening on April 25, coinciding with concerns over “stagflationary” trends in the United States economy.
Data sourced from Cointelegraph Markets Pro and TradingView revealed that Bitcoin recorded new multiday lows, touching $62,785 on Bitstamp.
Market sentiment turned somber after the U.S. Q1 gross domestic product (GDP) figures fell significantly short of expectations, registering at 1.6%. Concurrently, inflation figures surpassed forecasts, spotlighting the challenge of balancing inflationary pressures with economic growth, particularly in the context of Federal Reserve policy.
The unexpected GDP data prompted speculation about the Federal Reserve’s response, with trading resource The Kobeissi Letter highlighting the dilemma facing policymakers. The discrepancy between the actual GDP figures and Goldman Sachs’ forecasts underscored the uncertainty surrounding economic projections.
Market participants had already begun revising expectations regarding the Fed’s monetary policy stance, with the probability of an interest rate cut in the near term diminishing. According to the latest data from CME Group’s FedWatch Tool, the likelihood of a rate cut at the upcoming Federal Open Market Committee meeting in May stood at just 6.3%.
In line with the broader market trend, Bitcoin experienced downward pressure, particularly in the wake of declines in U.S. equities, including tech stocks. However, not all traders anticipated sustained losses.
Popular trader Crypto Chase expressed optimism in a post on X, suggesting that BTC/USD could rally further to reach $68,000. Similarly, fellow trader Crypto Tony anticipated new macro highs before a period of consolidation in BTC price action.
Analyst Caleb Franzen highlighted the significance of the short-term holder (STH) realized price, which has historically served as a key support level for Bitcoin markets. Franzen indicated that a breach below the STH realized price, currently at $59,530, would signal a shift in sentiment towards bearishness.
Despite market turbulence triggered by U.S. economic data, Bitcoin traders maintained a cautious yet optimistic outlook, with attention focused on key support levels and bullish price targets.
