The encryption prices fell with the transformation of the US GDP to negatively, but here is why investors purchase the decline
The US total economic expectations suffocate the bullish momentum for encryption.
Economic data showed on Wednesday morning that initial US Q1 2025 GDP GDP 0.3 % contract, the market expectations of expansion by 0.3 %. This represents the lower and first negative domestic product since Q2 2022.
The clay worsened, the Q1 PC (PCE) expenses increased by 1.8 % against 1.2 % expectations, while the basic PCE rose to 3.5 %, much higher than expectations.
Weak growth and high inflation sparked recession, which led to decrease in shares and encryption. Meanwhile, KALSHI and Polymarkkets are pricing in high recession possibilities for 2025 – by 74 % and 70 %, respectively.
Bitcoin price decreased to $ 93,000 – dangerously lower than $ 93,500 before the monthly closure today. However, since then I wore up to $ 94,000.
Despite the weakness of Altcoins, experts are asking investors interested in purchasing the decline, referring to high global liquidity.
Why do you have decreased investors?
On Wednesday morning, the US GDP data raised the recession fears in the American economy – that will meet the printing of the GDP in the second quarter of technical recession.
The chances of the recession in 2025 increased to 74 % on KALSHI and 70 % on polymarket.
However, smart money investors do not panic. Kidney economy expert in swissblock, Henrik ZipbergIt claims that encryption and stocks are still due to a “higher bombing” gathering.
It highlights that GDP data in the United States has been negatively affected by heavy imports from American companies in preparation for Trump’s definitions and not accurately represented the path of the nation’s growth.
Moreover, the threat of weakening growth may lead to the occurrence of the axis of the American Federal Reserve, which will be for long -term risk origins. the CME FedwatchWhich represents the feeling of interest rate traders, is already pricing in four price cuts in 2025.
Although the Federal Reserve is unlikely to reduce its standard price at the FOMC meeting next week, President Jerome Powell can adopt a tone to calm the market.
Investors smart money do not exaggerate in the inflation data reaction on Wednesday. Although the Q1 PCE data has missed the brand, the main PCE in March is 2.6 %, in line with the market expectations.
During, Trueflation It still indicates that real inflation in the United States is much lower than the FBI goal by 2 %, with a current reading of 1.57 %.
Instead of excessive reaction of fluctuations in the short term, coding investors must reduce. Global liquidity-as measured by M2 Supply Global Move-is currently at the highest levels ever and is upward. Check the macroeconomic economy Raul PalM2 global scheme below.
Historically, this indicator showed a very strong association with the Bitcoin price track. If this trend continues, the BTC is heading to 140 thousand dollars, which is likely to pave the way for the highest new levels ever in Altcoins.
Best encryption for purchase now
Bitcoin is still an attractive investment, especially if it continues to be associated with the global M2.
However, investors must also pay attention to the highest performance altcoins. For example, Fartcoin He returned to the challenge of uncertainty in the broader market. He is currently trading at $ 1.14, and is preparing for another test to resist $ 1.20. The collapse above can pave the way for a processor to $ 2.
The encryption market today is another opportunity for marginalized investors to buy high -sided Altcoins such as SUI, Virtuals, BitTensor and Dogwifhat. However, they should manage the possibility of some negative aspect in the coming days.
Mahaidi assets are also high demand, bearing in mind that they are available at a fixed price and are not affected by the wider market expectations.
For example, Bibi’s mind (mind) Watch a wave of whale buy before the launch of the artificial intelligence agent on May 10.
While the artificial intelligence agent market is saturated with Solana, it has huge potential in the ethereum ecosystem. I collected the mind before already raised more than $ 8.5 million in a short time.
Looking at the strong demand for coins, many of the next 100x encryption analysts are called.
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