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Bitcoin traded as high as $81,547 on Bitstamp on Thursday’s Wall Street open after US economic data came in stronger than analysts had positioned for, Cointelegraph reported. The move followed a dip to $79,607 after Wednesday’s daily close, and the rebound landed the largest cryptocurrency back at a weekly resistance level.
The macro backdrop was mixed but tilted in crypto’s favour. The September Personal Consumption Expenditures index rose 0.5% month-on-month and 3.6% year-on-year, matching forecasts, while third-quarter GDP came in at 3.4% against expectations of 3.2%.
Also read: Bitcoin Steadies Near $82K as Warsh Avoids Rate-Hike Signal
Key facts
- BTC/USD reached $81,547 on Bitstamp, up from a low of $79,607 after Wednesday’s daily close.
- The Core PCE price index, excluding food and energy, rose 3.1% year-on-year, according to the Bureau of Economic Analysis release.
- Q3 GDP came in at 3.4%, above the 3.2% expected.
- Alphabet shares fell 12% on missed earnings and Q3 revenue, pulling US stock markets lower at the open.
- The Federal Reserve left rates unchanged at 3.75-4%, per the FOMC statement.
Rates on hold as inflation stays elevated
The FOMC held its benchmark rate at 3.75-4% at its latest meeting, in line with what markets had anticipated. Chair Kevin Warsh said activity was expanding at a strong pace in the accompanying statement, while calling inflation elevated. He also pointed to resilient domestic spending, strong productivity growth and robust capital investment, noting that job gains had kept pace with the workforce and the unemployment rate had changed little.
Commenting on the growth print to CNBC, Fwdbonds chief economist Chris Rupkey said economic growth was powering ahead despite geopolitical risks and higher energy costs hitting many sectors. He noted real GDP had returned above a 3% run rate for the first time in a year.
$81,400 becomes the line in the sand
Trader and analyst Rekt Capital, in his latest market analysis, said Bitcoin was zig-zagging between weekly levels around $80,400 and $81,400, and expected that to continue into the next weekly close. He flagged a reclaim of $81,400 by the weekly candle close as necessary for buyers.
October was also set to close lower for BTC/USD, down 3.3% for the month, according to the report — a contrast with the month’s historical tendency to deliver gains.
Why it matters
Bitcoin’s reaction shows how sensitive digital assets have become to each macro release, particularly with the Fed on hold and growth data beating forecasts. Investors weighing risk assets this week had to absorb a tech earnings disappointment and an inflation print that matched rather than beat expectations. Crypto held up better than equities in the same session, which is notable given that Alphabet’s slide of 12% dominated the stock narrative.
What to watch
The immediate test is whether Bitcoin can close the week above $81,400, the level Rekt Capital identified as the key barrier. The Fed’s next policy decisions and further inflation readings will set the tone beyond that.
This article is for informational purposes only and is not financial advice. Crypto markets are volatile and prices can change quickly; readers should do their own research.
Reported by Cointelegraph.
Source: Cointelegraph