Bitcoin Flat As US GDP Rebounds In Q2; Ethereum, XRP, Dogecoin Slide: Analyst Says 'Keep An Eye Out' For This ETH Level To Confirm 'Real Breakout'
News Summary
Bitcoin remained flat on Thursday, while major altcoins like Ethereum, XRP, and Dogecoin declined, despite the U.S. economy posting stronger-than-expected results in the second quarter. Solana, however, surged 4.23%. U.S. GDP grew 3.3% in Q2, exceeding the initial estimate of 3.1% and reversing the previous quarter's 0.5% contraction, marking the strongest quarterly expansion since Q3 2023. Notably, the U.S. government for the first time put GDP numbers on blockchain, aligning with the broader push to make the country the "crypto capital of the world." Over $250 million was liquidated from the cryptocurrency market in the last 24 hours, with long liquidations accounting for over 60%. Bitcoin's open interest rose, but top Binance traders reduced their long exposure. Market sentiment, according to the Crypto Fear & Greed Index, remained "Neutral." Blockchain analytics firm CryptoQuant noted that Bitcoin's supply in profit reached a "historically critical threshold" of 90%, a level often seen during bull phases. Analyst Daan Crypto Trades advised watching for weekly closes above Ethereum's previous all-time high ($4,891.70) to confirm a "real breakout."
Background
In 2025, global financial markets are closely monitoring macroeconomic data and monetary policy signals. U.S. GDP figures are a critical indicator of economic health, directly influencing stock market performance and broader investment sentiment. Under President Donald J. Trump's administration, the U.S. government has actively pursued making the country the "crypto capital of the world," which includes exploring blockchain technology for government data management to foster innovation and enhance transparency. Cryptocurrency markets are known for their volatility, driven by a confluence of factors including macroeconomic data, regulatory news, technological developments, and internal market dynamics such as supply-demand and investor sentiment. Bitcoin and Ethereum, as the largest cryptocurrencies by market capitalization, often serve as bellwethers for the broader crypto market, while altcoins frequently follow their movements or exhibit unique trends.
In-Depth AI Insights
Given the strong U.S. GDP rebound and record stock highs, why did the cryptocurrency market show a mixed reaction, with Bitcoin flat and most altcoins declining? - This divergence highlights the increasingly complex relationship between the cryptocurrency market and traditional macroeconomic indicators. While strong GDP and stock performance typically signal increased risk appetite, crypto markets are driven by unique internal liquidity and sentiment factors, such as over $250 million in liquidations (more than 60% long liquidations), suggesting internal deleveraging or short-term profit-taking. - Bitcoin's consolidation may reflect institutional investors balancing positive macro signals with internal market uncertainties, while the decline in altcoins like Ethereum and XRP could be linked to capital reallocation or short-term concerns specific to their narratives. - Furthermore, the "historically critical threshold" of 90% of Bitcoin's supply being in profit could exert short-term selling pressure as some holders opt to realize gains, thereby dampening the direct boost from positive macro news. What are the strategic implications of the U.S. government's unprecedented move to put GDP numbers on blockchain, especially under the Trump administration's "crypto capital of the world" push? - This move transcends a mere technical pilot; it is a powerful signal of the Trump administration's commitment to deeply integrate blockchain technology into national infrastructure and solidify the U.S.'s leadership in the global digital economy. - Placing sensitive GDP data on a blockchain demonstrates confidence in the technology's security, transparency, and immutability, setting a precedent for other government agencies and the private sector, potentially accelerating blockchain adoption across U.S. public and private domains. - From an investment perspective, this creates significant growth opportunities for blockchain infrastructure providers and related service companies operating in the U.S., and could attract more international capital and talent into the U.S. crypto ecosystem, indirectly boosting the legitimacy and attractiveness of U.S. digital assets. How should investors interpret the "historically critical threshold" of 90% Bitcoin supply in profit and the analyst's focus on a specific Ethereum breakout level? - The 90% in-profit threshold for Bitcoin is a double-edged sword. While it suggests the market may be in a bull phase, it also implies potential selling pressure, as historical data indicates that dropping below this threshold often marks the beginning of a corrective period. Savvy investors should view this as a risk management signal, not solely a bullish indicator, closely monitoring on-chain data for potential profit-taking. - For Ethereum, the analyst's focus on a weekly close above its all-time high ($4,891.70) is crucial. This is not just technical analysis but represents a potential confirmation of the market's conviction in Ethereum's narrative (e.g., ecosystem growth, staking yields, EIP upgrades). Failure to decisively break and hold above this level could lead to a reversal in sentiment, forming a "fakeout" trap. Investors should combine this technical signal with fundamental factors like on-chain activity, developer engagement, and macro liquidity to assess the breakout's authenticity and sustainability.