Cryptocurrency prices rise on strong US economic data, and here are the possible reasons for the continued bullish momentum – Source: Cryptonews The price charts of leading cryptocurrencies were greened on Thursday, thanks to positive economic data in the US that indicated a slowdown in inflation in addition to indicating better-than-expected economic performance in the second quarter in addition to a strong earnings report from Nvidia.
Bitcoin-BTC and Ethereum-ETH have risen by 2% to 3% in the past 24 hours, according to CoinMarketCap data, contributing to a rally in the cryptocurrency market as a whole. Bitcoin’s price recently approached $60,000, while Ethereum’s price approached the $2,600 level. Other leading currencies such as DOGE, TRX, Cardano and AVAX also saw similar growths.
US GDP rose in the second quarter to 3%, up from 2.8% previously.
2Q US GDP Revised up to 3% from 2.8% pic.twitter.com/SHrPBsLRBA
— Michael McDonough (@M_McDonough) August 29, 2024
Inflation indicators in the second quarter also recorded a significant decline.
Inflation is so yesterday’s news!
US GDP growth was revised upward, driven by a significant upward revision of consumer spending. That’s not what a #recession looks like, right?
Less inflation + decent growth ≠ stagflation pic.twitter.com/J4aIovDyif
— Jeroen Blokland (@jsblokland) August 29, 2024
Analysts believe that low inflation and strong growth may reduce the likelihood of the U.S. economy entering a recession.
While Nvidia’s latest earnings report fell short of the expectations of some optimistic investors, it was very strong and pointed to strong momentum in the AI sector.
BREAKING: NVIDIA BEATS EARNINGS.
– EPS: $0.68 vs. $0.65 expected
– Revenue: $30B vs. $28.9B expected
ALSO BREAKING: THE WORLD WILL NOT COLLAPSE. pic.twitter.com/nq8Y98TRdm
— Genevieve Roch-Decter, CFA (@GRDecter) August 28, 2024
That’s why US stock prices jumped on Thursday, with the S&P 500 and Nasdaq 100 up 1% and 1.5% respectively, according to TradingView; these positive macroeconomic indicators are likely to be the reason behind Thursday’s rise in cryptocurrency prices. But the question is, will this momentum continue in the future?
Will cryptocurrency prices continue to rise?
Despite the general rally in the cryptocurrency sector on Thursday, most leading cryptocurrencies are still at much lower price levels than during the week, with the price of Bitcoin falling after surpassing $64,000 on Monday.
Read also :Japanese yen on track for second consecutive monthly gain
Traders are wondering if cryptocurrencies can recoup their weekly losses. The answer to the question is based in part on data on Friday’s core personal consumption inflation index within the US, which is expected to support expectations that the Federal Reserve will start cutting interest rates next month.
Although the Federal Reserve is unlikely to cut interest rates by 50 basis points recently, starting to cut interest rates would support markets, assuming the US economy remains on track to avoid a recession.
