Crypto Markets Rally on Positive U.S. Economic Data

ETH ETFs recorded positive inflows on Wednesday as Bitcoin reserves on crypto exchanges hit a new low for the year.

Crypto markets rallied on Thursday, buoyed by U.S. economic data that exceeded analysts’ expectations.

Jobless claims were slightly above projections, while the Gross Domestic Product (GDP) figures showed stronger growth than anticipated.

Bitcoin (BTC) rallied 2% to trade above $60,000, and Ethereum (ETH) followed suit with a 2% rise, trading at $2,550. Meanwhile, Polkadot (DOT) was flat, and Solana (SOL) dipped 1%.

According to data from on-chain crypto analytics firm CryptoQuant, Bitcoin reserves on cryptocurrency exchanges have dropped to 2.62 million BTC, marking new lows for the year. This decrease could indicate reduced selling pressure in the market.

A CryptoQuant contributor, known as @gaah_im on X, suggests that this lower supply of Bitcoin on exchanges could favor a bull market, especially if demand continues to rise.

“The reduction in reserves may also be related to the growing adoption of self-custody strategies, where investors are seeking more control over their assets by storing them outside of the centralized brokerage environment,” they added.

Flare (FLR) was the biggest winner among the top 100 cryptocurrencies, gaining 12%. Helium (HNT) and ThorChain (RUNE) also outperformed, rising by 9% and 7% respectively. On the other hand, TON-based memecoin DOGS (DOGS), Maker (MKR), and Notcoin (NOT) dropped 8%, 3%, and 2%, respectively.

Jobless Claims and Economic Growth

On Thursday, the U.S. Labor Department revealed that initial unemployment claims for the week ending August 24 dipped slightly to 231,000, just slightly over the Dow Jones estimate of 230,000. Though this figure was down by 2,000 from the previous week, it indicates the labor market is gradually stabilizing.

In another positive sign, the Commerce Department reported stronger-than-expected economic growth for the second quarter. Real GDP increased at an annual rate of 3%, better than the earlier estimate of 2.8%. This was largely due to a spike in consumer spending, which accelerated at a 2.9% rate.

The inflation numbers were also adjusted, mostly moving lower. The personal consumption expenditures (PCE) price index, an inflation gauge favored by the Federal Reserve, was revised down to 2.5%.

Spot Ethereum ETFs Record Positive Inflows

Spot Ethereum exchange-traded funds (ETFs) recorded positive inflows after nine consecutive days of outflows totaling $115 million. On Wednesday, ETH ETFs logged $5.8 million in net inflows.

BlackRock’s iShares Ethereum ETF (ETHA) led the charge with an inflow of $8.4 million, followed by Fidelity’s Ethereum ETF (FETH), which attracted $1.3 million. However, Grayscale’s Ethereum Trust (ETHE) continues to bleed assets, registering an outflow of $3.8 million, according to Farside Investors data.

Meanwhile, U.S. stock markets recorded positive movement on Thursday. The S&P 500 climbed by 0.7%, the Nasdaq Composite recorded a 1.2% gain, and the Dow Jones Industrial Average rose by 0.6%.