Bullish for Bitcoin and the wider industry: GDP grows 2.9% in Q4

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Source: BitcoinBTC

The positive GDP figure for the US economy in the fourth quarter of 2022 hints at investor optimism and could support the Bitcoin rally going forward. The BTC price gave a breakdown across the three cost bases for the first since 2019.

Economists around the world have been paying greater attention to all the developments taking place in the United States. Earlier this week, the world’s largest economy released its GDP data for the fourth quarter of 2022, beating projections.

US GDP in the fourth quarter of 2022 came in at 2.9%, beating market expectations of 2.6%. Current data shows that the US economy continues to grow, however, at a slower pace than in the third quarter when GDP grew by 3.2%. Nonetheless, the market views the fourth quarter GDP numbers with a sense of optimism despite several reports that retail sales fell late last year.

As the GDP numbers have turned better than expected, this could lead to better performance on Wall Street, and ultimately the crypto space. Thus, this could prove bullish for Bitcoin and the broader crypto market in the future.

Since the start of the month, Bitcoin bulls have shown some activity, with the price of BTC already up 33% in January. Earlier this month, the price of BTC also broke above $23,000, however, it appears to be a resistance zone at the moment.

Bitcoin Chain Indicators

Amid the recent Bitcoin (BTC) price rally, the Bitcoin Fear and Greed Index surged to 55/100. This is the first time since March 2022 that the Index enters the Greed zone thus somewhat mitigating the risk of contagion from the fall of FTX and Genesis. However, it is still quite low from the Greed zone and does not necessarily mean that the Bitcoin party ends here.

Bitcoin Fear and Greed Index is 55 – GreedCurrent price: $23,033 pic.twitter.com/OAt0TakkZR

— Bitcoin Fear and Greed Index (@BitcoinFear) January 27, 2023

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At press time, Bitcoin is trading at $22,883 with a market cap of $441 billion. This is the first time in three years that Bitcoin has given a breakout on all three realized prices. On-chain data provider Glassnode explained:

The recent surge in #Bitcoinprice action resulted in a first break above all three cost bases for the first time since the bear market of 2018/19 and the Covid crisis of March 2020. An extended duration above these key psychological levels would be considered constructive.

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Courtesy of Glassnode

In addition, the recent rise in Bitcoin prices has also helped short-term or low-averaged investors. Data from IntoTheBlock shows that 61% of Bitcoin holders are currently in profit while only 36% are in loss.

If the price of BTC holds above $23,000, it could set the course at $25,000 and even higher.

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