The U.S. Bureau of Economic Analysis (BEA) published better-than-expected economic data on Thursday morning.
Bitcoin Nudged Higher by Strong US GDP Figures
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Stronger-Than-Expected GDP Figures Lift BTC, Albeit Modestly
The American economy roared past expectations and expanded by 3.3% in Q2 according to Thursday’s announcement by the Bureau of Economic Analysis (BEA). Economists had predicted a growth rate of anywhere between 3.0% and 3.1%, but a drop in imports coupled with a jump in consumer spending buoyed the nation’s gross domestic product (GDP), sending markets higher, although bitcoin ( BTC) increased by only a smidgen.
Imports which reduce GDP, nosedived by 29.8%. Since imports subtract from the overall GDP metric, a decrease in imports such as the one reported today, results in an increase in GDP. Conversely, exports have an additive effect to GDP, and the BEA reported a small 1.3% decrease in exported goods for Q2. The net effect was a large decrease in imports, mostly attributable to the Trump administration’s controversial tariff policy, yielding a higher-than-expected gross domestic product. Consumer spending grew by 1.6%, which also added to the GDP figure.
Stock markets rallied on the news, with the S&P 500, Nasdaq, and Dow, all posting increases of 0.31%, 0.60%, and 0.09% respectively. Bitcoin moved up by a very modest 0.15% for the day, which while nominal, beats its weak performance over the past four days.
Overview of Market Metrics
Bitcoin was trading at $112,367.34 at the time of writing, up 0.15% over 24 hours and mostly flat for the week, according to data from Coinmarketcap. The cryptocurrency’s price has been moving between $110,900.92 and $113,450.08 since Wednesday.
Trading volume was up 2.62% over 24 hours at $63.76 billion, and market capitalization ticked upward by 0.28% to $2.23 trillion. Bitcoin dominance rose 0.16% since yesterday and stood at 59.39% at the time of reporting.
Total bitcoin futures open interest dipped to $81.23 billion on Thursday, a 0.40% decrease. Bitcoin liquidations on Coinglass totaled $41 million, with $21.03 million of that being long liquidations, while the remaining $17.97 million was attributable to shorts.
