U.S. GDP grew at a 3.4% annualized rate in the third quarter, above the 3.2% consensus, while the Atlanta Fed’s GDPNow model estimates 3.2% growth for the fourth quarter. The Federal Reserve kept its benchmark rate between 3.75% and 4% on October 28, as the strong economy provided no urgent reason for rapid easing. This limits the prospects for rate cuts, but sustained growth also supports risk appetite and has not prevented Bitcoin from rallying, as it did between January 2023 and March 2024 when its price rose from $16,500 to more than $73,000 despite high rates. However, the federal deficit exceeding 6% of GDP and public debt above $40 trillion require the U.S. Treasury to keep issuing debt. For Bitcoin, American growth therefore has a contrasting effect, supporting risk appetite while reducing expectations of a more accommodative monetary policy.
Source: Read the original article
