Bitcoin Surpasses $65,000 As US Economy Grows 3%

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Bitcoin broke above $65,000, hitting a monthly high, after US GDP growth rose to 3% from 1.6% last quarter, according to DRINK.

In addition, the US Labor Department reported a drop in initial jobless claims, which fell by 4,000 to a seasonally adjusted 218,000 for the week ended September 21. The numbers were slightly below expectations, suggesting some improvement in labor market conditions.

The four-week moving average of weekly jobless claims, which smooths out weekly volatility, also fell 3,500 to 224,750, suggesting an overall downward trend in claims.

The latest GDP numbers, along with the drop in weekly jobless claims, reinforce the idea that the US economy is on solid footing. This positive outlook likely contributed to the bullish sentiment surrounding Bitcoin, pushing its price to new highs.

The price of Bitcoin is now nearing $65,500, marking a 3% increase in the past 24 hours, according to TradingView. The flagship crypto has gained over 1,000 points in market value since the GDP figures were released.

Monetary policy adjustments in the US and China

The rise in Bitcoin prices began last week following the Fed’s decision to cut interest rates by 50 basis points, a move not seen since the Covid pandemic.

Earlier this week, Bitcoin surpassed $64,000 on expectations of loose global monetary policies, significantly influenced by China’s stimulus measures and the US Fed’s interest rate cut decision.

China is considering injecting 1 trillion yuan ($142 billion) into big banks to boost lending and economic growth. The potential move, China’s biggest capital injection since 2008, aims to counter slowing economic performance.

Funding, from new sovereign bonds, could benefit risk assets such as Bitcoin due to increased liquidity and reduced borrowing costs.

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