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Big Day For Bitcoin As Investors Eye ECB And US GDP Numbers

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Bitcoin price has woken up from its snow-white sleep over the past two days.As news BTC reportthe price rally began shortly after the Dollar Index (DXY) showed weakness and suffered a sharp pullback.

Bitcoin and the Dollar Index have been opposite for most of 2022 correlatedThe US dollar was gaining significant strength while the DXY continued to rise and all fiat currencies around the world fell.

However, the trend was also very negative for the price of Bitcoin, where a strong USD meant a weak Bitcoin. The inverse correlation was seen again on Tuesday.

Therefore, a long-term weakness in DXY could mean further momentum for the Bitcoin market, which tends to be bullish in the short term. In this regard, today (Thursday) is an important day for the Bitcoin market. European Central Bank (ECB) will report on upcoming policies and US GDP figures will be released.

Bitcoin Price at Central Bank Navel

Within the DXY, the dollar is now nearing more than a month low against a basket of currencies with the euro holding 57.6% weight. The drop comes after growing speculation that the US Federal Reserve will refrain from aggressive rate hikes to mitigate recession risks.

Rodrigo Catril, senior currency strategist at National Australia Bank, said: Said Reuters basically said there are still factors in favor of the US dollar. In the short term, however, his expectations are different.

But certainly in the short term we’re seeing the dollar retreat a bit considering what the price was. […] Our feeling is that it’s a bit of a consolidation of recent activity rather than an extension of the dollar’s weakness.

Today’s GDP numbers may encourage the Fed to stick with its current policy and not hit the brakes just yet.

Therefore, whether the Bitcoin price can continue to rise will also depend on today’s release of US Gross Domestic Product (GDP) numbers. The Federal Reserve Board (FED) is watching these numbers closely.

Analysts expect the US economy to grow by 2.4% in the third quarter. This could let the Fed know that rate hikes aren’t hurting the economy too badly right now.

As for the ECB, Catril commented that what the ECB says today is important. “The question is whether they want to show full commitment to their inflation target, or are they showing weakness and concerns about what appears to be a difficult growth outlook?”

Ahead of today’s announcement, Bitcoin’s price is in wait-and-see mode, showing a slight correction after its recent surge.

Bitcoin in wait-and-see mode ahead of today’s announcement. sauce: TradingView

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