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GDP decline, persistent high inflation, stocks and bonds both plummet, Bitcoin trading in a range

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GDP decline, persistent high inflation, stocks and bonds both plummet, Bitcoin trading in a range

The U.S. announced yesterday that the domestic gross domestic product (GDP) for the first quarter was only 1.6%, while the Personal Consumption Expenditures (PCE) price index showed an annual growth rate of 3.4%. This has raised concerns among investors about economic downturn and stagnant inflation. The three major U.S. stock indexes experienced losses, with U.S. bond prices plummeting. However, Bitcoin and Ethereum saw slight increases.

GDP Declines, Inflation Remains High

The U.S. announced yesterday that the first-quarter Gross Domestic Product (GDP) only reached 1.6%, significantly lower than the expected 2.5% by economists and a sharp decline from the 3.4% in the fourth quarter of last year.

The Personal Consumption Expenditures (PCE) Price Index showed a year-on-year increase of 3.4%, marking the largest quarterly increase in a year. The core PCE, which excludes food and energy, also soared to 3.7%, raising concerns about inflation once again.

The Federal Reserve is set to announce its interest rate decision on May 1st, with market expectations leaning towards maintaining the rate at a high level. According to the CME Group's FedWatch Index, investors are now looking beyond September for any rate cuts, and there may only be one rate cut left for the year.

Bitcoin Consolidates within a Range, Can Hong Kong ETF be a Catalyst?

Bitcoin has been consolidating within a range recently, showing a head-and-shoulders pattern. It is crucial to monitor whether it will break below the 58,441 quarterly line or face resistance at the 67,000 level where it has failed to hold multiple times.

Six Bitcoin and Ethereum spot ETFs are set to begin trading on April 30th in Hong Kong. According to the latest analysis from Bloomberg, the issuance volume could reach $1 billion in the next two years. It remains to be seen if this will provide a catalyst for an upward movement in the prices of BTC and ETH.

Six Bitcoin and Ethereum spot ETFs are set to begin trading on April 30th in Hong Kong