Bitcoin (BTC) dropped below $62,000 on April 25 as concerns over “stagflationary” macro data in the United States unsettled the market.
BTC/USD 1-hour chart. Source: TradingView
According to data from Cointelegraph Markets Pro and TradingView, Bitstamp recorded new multi-day lows of $62,785.
The market opened with troubled sentiment after the U.S. Q1 GDP came in significantly lower than expected at 1.6%. At the same time, prices rose more than anticipated, highlighting the challenge of controlling inflation ahead of the Federal Reserve.
According to The Kobeissi Letter, if the final reading of 1.6% is confirmed, it would end six consecutive quarters of 2%+ growth. Additionally, the GDP data came in nearly 50% lower than Goldman Sachs’ forecast.
The letter also raised concerns about the Fed’s options in a scenario where inflation is rising but the economy is weakening. Cutting rates would lead to skyrocketing inflation, while raising rates would crash the economy.
Market participants were already reducing the likelihood of an economic policy easing by the Fed, and the latest data from CME Group’s FedWatch Tool showed just a 6.3% chance of a rate cut at the next meeting of the Federal Open Market Committee.
Bitcoin followed the downward trend of U.S. equities, particularly tech stocks, struggling to maintain the ground it had reclaimed the previous week after a dip below $60,000 due to geopolitical factors.
However, not everyone was expecting losses. Popular trader Crypto Chase suggested that BTC/USD could see more upside potential and reach a high of $68,000. Similarly, trader Crypto Tony called for new macro highs before entering a consolidatory phase.
Analyst Caleb Franzen identified the short-term holder (STH) realized price, currently at $59,530, as the critical support level. If BTC falls below this level, Franzen would turn bearish.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment decisions.