BTC Volatility Analysis for GDP Report, 27th October 2022

Data Analysis

Measured by Clometrix

Bitcoin's volatility ratio was 4.63x, against 1.68x for a typical GDP Report release since 2021. Its volume ratio was 4.40x, against a typical 1.94x. That is more than twice what this release usually does. Both compare the quarter hour of the release with an ordinary quarter hour that same day, where 1.00x is no change: volatility is how far the price ranged, volume how much traded.

How Bitcoin moved

Bitcoin was at $20,592.31 when the figure came out. Fifteen minutes later it was 0.28% higher, and an hour later 0.47% higher. Its high-to-low range in the hour after was 1.36% of its price, against 0.45% in the hour before.

The release

Released by the Bureau of Economic Analysis on 27 October 2022 at 8:30 AM EDT. The Gross Domestic Product Report came in at 2.6% for 2022 3rd Quarter, against -0.6% in 2022 2nd Quarter. The economy's output is rising again, after a fall.

It arrived at the same moment as Durable Goods Orders, Durable Goods Orders Excluding Transportation, Initial Jobless Claims and Continued Jobless Claims, so the reaction measured on this page belongs to all of them together.

What made it matter

Since 2021, GDP Report releases in the two weeks before a Fed decision have moved Bitcoin more than those at other times: a median volatility ratio of 2.22x across 16, against 1.61x across 52. This one came out 6 days before the Federal Reserve's 2 November rate decision. Its own ratio of 4.63x compares with 2.22x for those, so it moved the price more than its circumstances alone would suggest.

Its record

Across 68 GDP Report releases since 2021, Bitcoin's median volatility ratio is 1.68x.

About Gross Domestic Product Report

The GDP report is one of the BEA's most crucial outputs. It tells us the monetary value of all the finished goods and services produced within a country's borders in a specific time period. GDP gives the public an indication of an economy's size. Moreover, when compared against prior periods, this data can reveal whether the economy is expanding (producing more goods and services) or contracting (registering declining output). The direction of GDP helps central banks determine whether it is necessary to intervene with monetary policy or not.