Bitcoin Price Rebounds Toward $95K Despite Weak US GDP Data

Bitcoin’s price rebounds toward $95k following a dip from negative US GDP data. Traders remain optimistic, expecting the Federal Reserve to cut interest rates. The market shows mixed reactions, suggesting instability but potential for a surge towards $100,000. Upcoming economic reports could also influence trends.

Bitcoin has staged a comeback, bouncing back to the $95,000 mark after a brief sell-off triggered by US GDP figures. Following a dip to around $92,910 at the start of the New York trading session, Bitcoin bulls are now firmly attacking this key resistance level. Traders appear unfazed by the discouraging GDP data, which indicated a contraction in the US economy for the first quarter of 2025—notably, they expect that the Federal Reserve might change course soon, potentially resuming rate cuts.

The recent drop in the US economy is part of a broader pattern. Analysts suggest it could be a one-off consequence of businesses pre-emptively increasing imports ahead of looming tariffs proposed by former President Donald Trump on a substantial number of countries. Despite concerns like low consumer confidence and economic shrinkage, crypto investors are betting the Fed will eventually cut rates, a strategy that has historically favoured Bitcoin prices.

Odds for a reduction in the Fed’s interest rates have notably spiked from 59.8% to 63.8% over the last week. Some traders, including the well-known analyst Skew on X, have noted that recent rebounds in both Bitcoin and US stocks have been supported by encouraging earnings reports from major US companies. This could signal growing confidence among investors in riskier assets.

The liquidity flow has also reflected an uptick in market activity, suggesting passive buyers have been influencing Bitcoin’s price increase today. This, alongside a series of short positions closing, points to a potential shift in market dynamics. As the funding rate stabilises, there’s growing anticipation about an impending price move for Bitcoin.

Market watchers highlight the significance of the $95,500 level as crucial for traders. Analysts predict that a sustainable push past this threshold could propel Bitcoin towards the milestone of $100,000 quite rapidly. Meanwhile, the upcoming jobs report set for May 2nd might sway both the stock market and cryptocurrencies, depending on how many positions are filled in the economy this April.

It’s important to highlight that none of this should be interpreted as investment advice. As always, the realities of trading carry risks, and thorough research is essential before diving into decisions.