BTC Price at $38,000 while US GDP Grew at 5.2% Rate in Q3 2023

Since the beginning of November, Bitcoin (BTC) price has teased $38,000 severally in attempts to rally above $40K. The flagship cryptocurrency has been consolidating in an ascending triangle with high speculation of an uptrend continuation. However, Bitcoin price has been signaling short-term weaknesses following the regulatory crackdown in the United States. Moreover, the US government has been pushing to regulate the crypto industry to tame the high inflation since the high interest rates have not entirely been effective.

Despite the daily golden cross between the 50 and 200 Moving Averages (MA), Bitcoin price is likely to revisit the support range between $31k and $32k in the short term to sweep more buyers. Moreover, the flagship crypto asset has been forming a bearish daily Relative Strength Index (RSI) in the past three weeks. Nonetheless, the speculation of imminent approval of spot Bitcoin exchange-traded funds (ETFs) in the US by early January could see the instrument rally without warning signs.

Bitcoin Price Action Looks Even Better with Improving US Economy

Bitcoin price has significantly benefited from the rising interest rates in the United States in the past year. The epitome of flight to Bitcoin by institutional investors and retail traders was highlighted by the banking crisis earlier this year. However, the Biden administration has tightened its monetary policies to control the crazy speculation in the cryptocurrency, in a bid to bolster the gross domestic product (GDP).

According to the latest data from the United States Bureau of Economic Analysis (BEA), the real gross domestic product (GDP) increased at an annual rate of 5.2 percent during the third quarter.

The GDP spike during the third quarter was a significant uptick compared to the 2.1 percent in the second quarter, thus signaling an upward revision from the advance estimate of 4.9 percent issued last month. Consequently, the country’s real GDP is almost regaining the prior high recorded in the fourth quarter of 2021. Moreover, the third quarter real GDP outperformed the 5 percent forecasts issued by economists polled by the Dow Jones.

Market Picture

With five weeks to the end of 2023, the cryptocurrency market is expected to record higher volatility as more options and open futures trade close before end-of-year festivals. Cash inflow to crypto investment products is, however, expected to increase as the fourth halving, which is anticipated to trigger the macro bull run, happens during the first half of 2024. Additionally, gold is on the cusp of a historical breakout, which will expedite the flight to quality in the coming quarters. Moreover, market pundits believe the US dollar is in the last phase of global dominance as the world reserve currency amid the rise of the BRICS alliance and Bitcoin adoption.