Crypto Markets Trade Sideways Ahead of U.S. Inflation Report

Bitcoin is up 2.5% in the past 24 hours, while Ether and Solana gained 1%.

By: Mehab Qureshi Loading...

vibrant depiction of crypto markets rallying slightly

Crypto markets rallied slightly on Thursday as traders braced for the release of key U.S. inflation data.

A Commerce Department report showed lower-than-expected economic growth in the first quarter of the year but also a slight dip in a critical inflation indicator.

Bitcoin rallied nearly 3%. Meanwhile, Ether and Solana gained around 1%, according to data from CoinGecko.

BTC Price chart
BTC Price

CoinGlass data reveals that in the past 24 hours, 71,877 traders were liquidated for a total of $154 million.

According to Michael Van de Poppe, CEO of MN Trading, spot Ethereum ETFs will likely go live by the end of June.

"A boring state of mind for the markets as Bitcoin is consolidating,” he said. “Important support level approaching where it must hold $66-67K to avoid further downwards momentum to $60K.”

Data from the Bureau of Economic Analysis (BEA) indicated that in the first quarter of 2024, the U.S. real gross domestic product (GDP) grew at an annualized rate of 1.3%. This is a revision from the initial estimate of 1.6% but slightly better than the Dow Jones forecast of 1.2%. In contrast, the previous quarter saw a GDP increase of 3.4%.

Additionally, the Labor Department reported an increase in initial unemployment claims to 219,000 for the week ending May 25 — up 3,000 from the previous week.

Investors are now anticipating the release of the personal consumption expenditures (PCE) price index report for April, scheduled for Friday. The PCE price index is the Federal Reserve's preferred measure of inflation, offering insights into consumer spending and overall economic health. It tracks changes in the prices of goods and services consumed by individuals.

Meanwhile, the U.S. stock market also declined on Thursday.

The Dow Jones Industrial Average dropped by 0.8%, the S&P 500 decreased by 0.4%, and the Nasdaq Composite fell by 0.2%.