• The US economy’s GDP for the fourth quarter of 2022 was reported to be 2.9%, exceeding expectations of 2.6%.
• This news has been viewed positively by investors, and could be a contributing factor to the rally in Bitcoin prices.
• The Bitcoin Fear and Greed Index has jumped to 55/100, the highest value since March 2022.
The US economy’s GDP for the fourth quarter of 2022 has been reported to be 2.9%, exceeding expectations of 2.6%. This is the first time since 2019 that the US economy has seen such a positive growth rate, and has been viewed positively by investors. This news could be a contributing factor to the recent rally in Bitcoin prices, as the BTC price has given a breakout over all-three costs basis for the first since 2019. The Bitcoin Fear and Greed Index has jumped to 55/100, the highest value since March 2022, showing a sense of optimism among investors.
The US GDP data is only one of the many factors that could be contributing to the bullish sentiment surrounding Bitcoin. Other positive news includes the recently announced $1.9 trillion stimulus package by the US government, as well as the increasing institutional investments in the crypto space. This is likely to bring more liquidity to the crypto markets, which could help drive the prices of digital assets further.
The positive news regarding the US economy and the crypto space has been further augmented by the increase in the number of new users in the crypto space. This year, the number of users has grown significantly with exchanges reporting an increase of around 30-50%. This influx of new users could be beneficial to the industry, as it would drive more demand for digital assets.
On the technical front, Bitcoin is also seeing a surge in its price. The BTC price has broken past $23,000, however, it seems to be a resistance zone for now. If the bulls can push the price to break past this level, then it could open the door for further gains.
Overall, the news is bullish for Bitcoin and the entire crypto industry. With the US economy showing signs of recovery and the influx of new users, the crypto markets could be entering a new bull run. This could bring more liquidity to the space, further driving the prices of digital assets.