Bitcoin and tech stock continue tumbling after strong US GDP data

Markets • July 25, 2024, 10:58AM EDT
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Quick Take

  • Bitcoin fell further, alongside tech stocks, failing to rebound after Thursday’s strong U.S. GDP data and cooler PCE inflation. 
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%.


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About Author

Brian McGleenon is a UK-based markets reporter for The Block. He has worked as a financial journalist and producer for multiple news outlets over the years, such as Fuji Television, The Independent, Yahoo Finance, The Evening Standard, and The Daily Express. Brian is also a screenwriter and producer with one feature film produced and one in development with Northern Ireland Screen. Apart from web3 and cryptocurrency developments, he is also interested in geopolitics, environmental issues, artificial intelligence, and longevity research. Get in touch via email [email protected].

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