Bitcoin (BTC<\/a>) ate away at the prior day\u2019s gains on July 27 as United States macroeconomic data produced a muted reaction.<\/p>\n Data from Cointelegraph Markets Pro<\/a> and TradingView<\/a> showed BTC price strength waning after a brief push to $29,680 into the daily close.<\/p>\n The largest cryptocurrency had offered a modest uptick after the Federal Reserve hiked interest rates to their highest since 2001<\/a> \u2014 a move already priced in by markets.<\/p>\n The day\u2019s U.S. gross domestic product (GDP) advanced print for Q2 came in better than forecast at 2.4% annualized, pointing to inflationary pressures continuing to ebb in what could prove a catalyst for risk asset performance.<\/p>\n Bitcoin did not noticeably react, however, with stocks likewise fairly flat after the Wall Street open.<\/p>\n Micha\u00ebl van de Poppe, founder and CEO of trading firm Eight, thus hoped that the July 28 Personal Consumption Expenditures (PCE) Index release would provide a more tangible growth incentive.<\/p>\n \u201cGDP comes out way more positive than expected. That\u2019s great. Soft landing case starts to pick up pace. If GDP was worse than expected, you\u2019d see markets drop,\u201d he argued<\/a> in a Twitter update. <\/p>\n \u201cBitcoin steady, stocks steady. Now PCE better than expected and we go up.\u201d<\/p><\/blockquote>\n A subsequent post nonetheless cautioned that BTC\/USD could see a dip beforehand, while $29,700 now formed a line in the sand.<\/p>\n Open Interest to new highs, price grinding upwards, seems likely to sweep down before up for #Bitcoin<\/a>.<\/p>\n If not? Break $29,700 in one-go and we’ll have a party. pic.twitter.com\/CxznrbMCVh<\/a><\/p>\n \u2014 Micha\u00ebl van de Poppe (@CryptoMichNL) July 27, 2023<\/a><\/p><\/blockquote>\n On-chain monitoring resource Material Indicators, meanwhile,\u00a0suggested<\/a> ahead of time that the GDP would be a \u201cnothingburger\u201d for crypto.<\/p>\n An accompanying chart of the BTC\/USD order book on the largest global exchange, Binance, showed support still thin above $28,500, potentially easing a market drop should one begin.<\/p>\n \u201cThe strong economy\/soft landing narrative is gaining some traction, but the FED would still like to see softening of the labor market to support the thesis relative to what the \u2018historical record\u2019 shows about the correlation between the labor market and inflation,\u201d Material Indicators added<\/a> in part of additional analysis.<\/p>\n The GDP likewise had little impact on market expectations for where Fed policy would go at the next interest rate decision point in September.<\/p>\n Related:\u00a0Bitcoin bull run next? Bitfinex stablecoin ratio \u2018blows up\u2019 in 2023<\/a><\/em><\/strong><\/p>\n On the day, odds of rates pausing at their current 5.25-5.5% stood<\/a> at 76%, with a 24% likelihood of another 0.25% hike, according to CME Group\u2019s FedWatch Tool.<\/p>\n Commenting on the outlook for crypto vis-a-vis U.S. macro movements, financial commentator Tedtalksmacro called the rate hike event \u201cvery vanilla.\u201d<\/p>\n \u201cThe markets reacting as if we are just one more hike closer to a pause, BTC and US equities higher,\u201d he concluded<\/a> the day prior.<\/p>\n One conspicuous reaction traditionally a headwind for crypto was U.S. dollar strength, which spiked on July 27.<\/p>\n The U.S. Dollar Index (DXY) hit 101.84, its highest since July 11 and furthering a bounce from its lowest levels in over a year<\/a>.<\/p>\n![](\"https:\/\/s3.cointelegraph.com\/uploads\/2023-07\/fea2ad74-4d7f-49ec-b687-34a548fed26a.png\")
Analyst warns of BTC price dip<\/h2>\n
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U.S. dollar strength hits two-week highs<\/h2>\n
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