Ethereum (ETH) and Bitcoin (BTC) see more volatility after most recent U.S. GDP report
Major cryptocurrencies experienced sharp volatility following the United States Department of Commerce’s Gross Domestic Product (GDP) report, which was released earlier this Thursday. economic change,
The U.S. economy increased by 2.6% in the third quarter, outperforming analysts’ predictions. Economists expected the GDP to grow by 2.4%.
value of ETH It immediately crashed to an intraday low of $1,532 before hitting an intraday high of $1,578 within just two minutes.
Bitcoin and other major cryptocurrencies experienced similar bouts of volatility. The largest coin briefly slipped below the $20,500 level before recovering.
Higher than expected GDP growth was mainly due to rebalancing of imports and exports. The US economy shrank slightly in the first two quarters due to volatility in international trade.
The most recent GDP print will likely influence the U.S. Federal Reserve’s pace of additional rate hikes. The central bank is attempting to cool inflation while simultaneously avoiding a recession.
us President Joe Biden has said that third quarter GDP growth is “further evidence” that the economy is recovering at a steady pace. “For months, doomsdayers have been arguing that the US economy is in recession and congressional Republicans are headed for a recession. But today we have more evidence that our economic recovery continues to move forward,” he said.
Dean Baker, senior economist at the Center for Economic and Policy Research, says that the most recent GDP print also implies strong productivity growth, which will go far in “reducing inflationary pressure.”
