Crypto Trade Flat As U.S. Recession Fears Ease
By Laxmikant Khanvilkar
Despite the key U.S. macro indicator remaining tentative for high risk asset classes, cryptocurrencies have put up a valiant effort.
The gross domestic product (GDP) expanded at an annual rate of 2.9% for the fourth quarter of 2022, down from 3.2% in the third, better than expectations for a 2.6% increase.
Financial markets appear to be reacting positively to what they saw in the latest data, including an unexpectedly low number of jobless claims.
“Real disposable income,” which represents personal income after adjustments for taxes and inflation, increased 3.3%, while the quarter-to- quarter change in gross domestic purchase prices increased 3.2%, down from 4.8% in the third quarter.
Signs of economic slowdown were present in the data as well, as a 2.1% increase in consumer spending arrived below expectations of 2.5%. With consumption accounting for 70% of GDP, investors in risk assets, particularly crypto, will likely be monitoring additional weakness in coming months.
Bitcoin, the largest cryptocurrency by market value, was recently trading at about $23,000, down 0.1% in the past 24 hours. ETH was trading flat around $1,600.
Equities closed up as traders processed the latest U.S. GDP report that showed solid economic growth at the end of last year. The tech-heavy Nasdaq Composite rose 1.7%, while the S&P 500 and the Dow Jones Industrial Average (DJIA) were up 1.1% and 0.6%, respectively.
The global crypto market capitalization has decreased by 0.10% in the last 24 hours, standing at $1.05 tn. The total crypto market volume, on the other hand, has dropped by 14.20% in the same time period, amounting to $53.80 bn. Out of this, $5.60 bn is attributed to DeFi, making up 10.50% of the total crypto market volume. Stable coins, on the other hand, constitute 89.70% with a total volume of $48.30 bn. Bitcoin’s dominance has also increased by 0.10% in the last day, currently standing at 42.40%.
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