Mixed Crypto Market Day as Bitcoin Holds Above Support

The crypto market experienced mixed trading, with Bitcoin hovering around $64,000 despite a disappointing US GDP report that fueled speculation of interest rate cuts. Fund managers remained bullish, predicting Bitcoin's value could triple in 2024 due to ETF inflows and the halving event. Altcoins showed a split between winners and losers, with Baby Doge Coin leading gains and BinaryX topping the losses.

Crypto Market Experiences Mixed Trading Day as BTC Hovers Near Support

Amidst choppy trading conditions, the cryptocurrency market witnessed a mixed performance on Thursday, with Bitcoin (BTC) displaying resilience around the $64,000 support level. Meanwhile, the top 200 altcoins exhibited a balanced distribution between winners and losers.

Macroeconomic Data Influences Market Volatility

The primary catalyst for volatility in both the crypto and stock markets was an unexpectedly weak US GDP report, which revealed that economic growth in the first quarter fell short of expectations, arriving at a mere 1.6% annualized pace. This underwhelming performance intensified speculation regarding the future of interest rates, with the CME FedWatch Tool indicating a 59% probability of a rate cut by the Federal Reserve in September.

Treasury Yields and Index Performance

Treasury yields responded positively to the GDP data, with the benchmark US 10-year yield surging to its highest point of the year at 4.739%. At the time of writing, it had retreated to 4.704%, marking an increase of 128 basis points for the day. The US Dollar Index (DXY) initially spiked to 106 following the report but subsequently relinquished its gains, trading at 105.58 at the time of writing, reflecting a 0.23% decline.

S&P, Dow, and Nasdaq Close Lower

The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all closed lower at the end of the trading day, recording losses of 0.46%, 0.98%, and 0.64%, respectively.

Bitcoin's Trading Day

Bitcoin's trading journey on Thursday was marked by volatility, with the cryptocurrency initially climbing to $64,740 before plunging to a daily low of $62,750. However, the bulls regained momentum in the afternoon, pushing the price back upwards. At the time of writing, BTC trades at $64,830, representing a modest 1.1% increase over the past 24 hours.

Bullish Outlook for Bitcoin

Venture capitalist Tim Draper remains optimistic about Bitcoin's future, predicting that its price will triple in 2024, driven by inflows into ETFs and the upcoming Bitcoin halving. He suggested that the top cryptocurrency could reach $250,000 by the end of the year.

Increased Demand for Bitcoin

Morgan Creek Capital's CEO, Mark Yusko, pointed to the introduction of spot BTC ETFs in the US as a catalyst for increased interest from registered investment advisors and a shift in demand. He anticipates inflows of up to $300 billion, primarily from baby boomers' retirement accounts.

Altcoin Performance

The top 200 altcoins exhibited a mixture of gains and losses. Baby Doge Coin (BabyDoge) emerged as the top gainer, surging by 25.7%. Wormhole (W) and Bonk (BONK) followed, with gains of 21% and 13.7%, respectively. BinaryX suffered the most significant loss, declining by 11.5%, while cat in a dogs world (MEW) and Galxe (GAL) lost 8.8% and 8.7%, respectively.

Market Capitalization and Bitcoin Dominance

The overall cryptocurrency market capitalization currently stands at $2.38 trillion, with Bitcoin's dominance rate hovering at 53.4%.