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US Economy Growing Faster Than Expected. Bullish Signs For Crypto?

The U.S. economy accelerated to a brisk 5.2% annual pace from July to September, surpassing the previous estimate of 4.9%.

Despite this boost, economists are cautioning that the current quarter may witness a sharp slowdown due to the cumulative impact of heightened borrowing rates on consumer and business spending.

Revised figures for Q3 disclosed the fastest quarterly expansion in almost two years, with consumer spending rising at a healthy 3.6% annual rate, albeit slightly lower than the initial 4% estimate.

Private investment, particularly in housing, defied higher mortgage rates, surging at a notable 10.5% annual pace.

Companies building inventories contributed 1.4 percentage points to quarterly growth, indicating a broad-based economic acceleration.

Government spending at various levels also played a role, contributing to the overall positive economic picture. This resilience is noteworthy considering the Federal Reserve’s 11 interest rate hikes since March 2022 aimed at combating inflation.

While higher rates have increased borrowing costs, they’ve also alleviated inflationary pressures, with consumer prices rising 3.2% last month, a marked improvement from the 9.1% year-over-year inflation in June 2022.

Despite a cooling job market, which remains healthy by historical standards, with an average monthly addition of 239,000 jobs in 2023, the unemployment rate has consistently stayed below 4% for a record 21 months. Hopes for a ‘soft landing,’ where the Fed curbs inflation without triggering a recession, are still alive.

The Organisation for Economic Cooperation and Development forecasts a reduced U.S. growth of 1.5% in 2024, down from 2.4% in 2023, as the Fed’s series of interest rate increases continue to restrain economic expansion.

The crypto market on the other hand, has been steadily recovering.

According to Statista, December 2022 recorded a low of about 800 billion USD in market capitalisation across all cryptocurrencies.

November 15 registered an almost 60% increase, marking approximately 1.4 trillion USD in market capitalisation.

* Original content written by Coinlive. Coinbold is licensed to distribute this content by Coinlive.