Bitcoin Falls Below $111K, Crypto Stocks Plunge on Higher GDP Growth

Crypto markets and related stocks experienced a downturn on Thursday following an unexpected revision in U.S. economic growth data. Here are the key points:

The U.S. GDP was revised up to a 3.8% annualized growth rate for Q2, higher than the previous estimate of 3.3%.
Initial jobless claims dropped significantly to 218,000, challenging assumptions about a weakening employment market.
Stronger economic data reduced expectations of a Federal Reserve interest rate cut next month. The probability of rates remaining unchanged rose to 17% from 8%.
The 10-year U.S. Treasury yield increased to nearly 4.20%, affecting stock markets negatively, with the Nasdaq down over 1% before trimming losses to 0.5%.

The impact on cryptocurrencies included notable price drops:

Bitcoin (BTC) dropped below $111,000 before recovering slightly, marking a 1.6% decrease over 24 hours.
Ethereum (ETH) fell below $4,000, down 4.5% in 24 hours.
Solana (SOL), Dogecoin (DOGE), Avalanche (AVAX), and Sui (SUI) saw more significant declines.

In the crypto-related stock market:

Strategy (MSTR), a major corporate bitcoin holder, decreased by 4.5%.
Coinbase (COIN) fell 4.1%.
Mining companies such as Cipher Mining (CIFR), HIVE Digital (HIVE), Bitdeer (BTDR), and Bitfarms (BITF) suffered losses between 6%-9.4%.
Stablecoin issuer Circle (CRCL) retreated by 4.4%, and Galaxy Digital (GLXY) slid 3.7%.