Bitcoin and tech stock continue tumbling after strong US GDP data

Markets•July 25, 2024, 10:58AM EDT
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Bitcoin and tech stock continue tumbling after strong US GDP data

Quick Take

  • Bitcoin fell further, alongside tech stocks, failing to rebound after Thursday’s strong U.S. GDP data and cooler PCE inflation. 
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Bitcoin continued its recent downturn, falling alongside tech stocks after stronger-than-expected U.S. economic growth data.
 
After Thursday's opening bell, the tech-heavy Nasdaq Composite fell 215.43 points, or 1.246%, to 17,126.98, while the S&P 500 dropped by 21.93 points, or 0.4%. Bitcoin also failed to reverse its near-term downtrend after GDP data showed Thursday that the U.S. economy grew by 2.8% in Q2 2024, beating economist forecasts of a 2% gain.
 
The largest digital asset by market capitalization traded flat over the past 24 hours, now changing hands for $63,800 at 10:24 a.m. ET, according to The Block's Price Page.

Odds are on for a September rate

Inflation pressures, measured by the Personal Consumption Expenditure (PCE) price index, cooled from 3.4% to 2.6%, indicating progress towards the U.S. Federal Reserve’s 2% inflation target.

According to ING Bank economist James Knightly, Friday's month-on-month core PCE print could generate numbers consistent with delivering 2% year-on-year inflation over time. Knightly said that U.S. consumer spending is set to slow in the second half of 2024. "Business surveys certainly point to a weakening outlook with today's numbers not swaying the market from their belief in a September Fed rate cut," he added.

According to the Chicago Mercantile Exchange (CME) FedWatch tool, interest rate traders increased the chances of a rate cut in September to 85.7%.