Analyst: The recent outlook for Bitcoin may depend on U.S. economic data

ChainCatcher news, according to Jinshi Data, XS.com market analyst Linh Tran stated that the recent outlook for Bitcoin will largely depend on the upcoming U.S. economic data, including preliminary GDP and core personal consumption expenditures inflation. If the data continues to show a slowdown in the U.S. economy and easing inflation, the Federal Reserve will have more ample reasons to initiate a rate-cutting cycle.

"This situation will create a liquidity-rich environment conducive to Bitcoin's recovery," Tran said. However, Tran added that if the data unexpectedly turns out to be "hot," investors may maintain a defensive posture, prolonging the short-term pullback.