The United States Gross Domestic Product (GDP) growth surpasses expectations for the fourth quarter of 2022, seeing a rise of 2.9%. While the predicted rise was 2.8%, such a statistic was confirmed in the Gross Domestic Product Report. While this is good news for the United States, it indicates that the country’s economy is growing slower than usual. In the third quarter of 2022, the US GDP growth hit a rise of 3.2%. Since then, economists predicted a rise of only 2.8% for the third quarter of 2022. Nevertheless, the recent statistics proved them wrong.
Similarly, the country experienced positive GDP growth of 2.9% in 2021 as well. Such a rise was not expected considering the lockdowns that affected the global economy back in 2020. The rebound in consumer spending in 2021 was one of the main causes of the rise. Nevertheless, consumer spending is not currently increasing, indicating worse months are to come. However, while the possibility of a decline in the economy exists, not even experts are sure what we are to expect in the upcoming months. Of course, most believe that the war in Ukraine is to blame for the current crisis in the global economy. So, such a growth in the Gross Domestic Product of the United States is not likely to affect external factors.
What Does GDP Growth Mean For Bitcoin?
The cryptocurrency market, while it has its own cycles of performance, is also bound to perform depending on how the global economy performs. Seeing positive growth that exceeds the expectations of experts in the GDP of the US is a good sign. Yet, this doesn’t mean that Bitcoin will keep performing well. Considering the fact that the rise is not something significant, we should also focus on the other factors.
The main factor to consider is the upcoming Bitcoin halving. For your information, the Bitcoin halving process often initiates a bull run. Until today, major bull runs were only initiated after a halving occurred. With that out of the way, the next Bitcoin halving will happen in mid-2024. If we go by this logic, Bitcoin’s market performance may get better as we approach 2024. The recent rally is a healthy indicator for the future of the market, but it doesn’t mean that a bull run is near.
All in all, such a rise in the US GDP is a good thing, but it doesn’t indicate anything major. While there are tens of other more influential issues going on throughout the globe, pinpointing whether Bitcoin’s price will keep increasing or not is hard. Because of this, some of the most important players in the crypto industry are waiting for the Q1 2023 report, hinting that the report might give indicators for the future of the industry.