As a seasoned investor with a keen interest in cryptocurrencies, I’ve seen my fair share of market fluctuations. However, the recent drop in Bitcoin (BTC) and other major cryptos following disappointing U.S. economic data was particularly noteworthy.


I observed Bitcoin (BTC) momentarily dipping under the $63,000 mark on a bustling Thursday, as the cryptocurrency market experienced a downturn in response to newly released data indicating higher inflation rates and slower economic growth in the United States during Q1.

The initial US GDP report for Q1 revealed a growth rate of only 1.6%, which is significantly less than the predicted 2.5% by analysts, marking a decrease from the 3.4% expansion seen in Q4, 2023. Concurrently, the GDP price index registered a slight overestimation at 3.1%, representing an increase from the previous quarter’s 1.6%.

The disheartening inflation figure release caused concern among investors, leading to decreased expectations for rate reductions in 2022 and negatively impacting various market assets. Consequently, the S&P 500 and Nasdaq opened the day with declines of almost 2%, while the yield on the 10-year U.S. Treasury bond climbed by 8 basis points to reach 4.73%, marking its highest level since November.

At a certain point, Bitcoin (BTC) experienced a decline of over 4%, reaching a low of $62,800. However, it later bounced back to $63,700. Similarly, during the same timeframe, Ether (ETH) dropped by 4% and was traded around $3,100.
I’ve noticed a significant drop in the prices of major altcoins today, with Solana (SOL), Avalanche (AVAX), and Aptos (APT) taking the lead. These native tokens of layer-1 networks experienced a setback, causing their prices to decrease by around 8% to 9%. The broader market, as represented by the CoinDesk 20 Index (CD20), followed suit with a decline of approximately 6%.

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2024-04-25 17:49