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Bitcoin rises toward $65,000 after US GDP miss but loses steam
Bitcoin briefly topped $65,000 before easing to around $64,729, as the GDP shortfall was tempered by resilient household spending, robust equipment investment, and still-elevated inflation.
Bitcoin briefly pushed above $65,000 on Thursday after US economic growth came in below expectations, but the move struggled to hold as investors weighed whether the slowdown would translate into easier Federal Reserve policy, CryptoSlate reports.
According to CryptoSlate data, the largest cryptocurrency traded near $64,729 after reaching an intraday high of $65,071 and recovering from a low of $63,205. The catalyst was a 1.5% annualized expansion in the US economy’s second quarter, below both the first quarter’s 2.1% pace and analysts’ 2.1% forecast.
CryptoSlate said the GDP miss initially improved the outlook for Bitcoin because weaker growth can increase pressure on the Fed to ease. However, strong consumer spending and persistent inflation provided less support for rate cuts, with household spending accelerating to a 3.2% annualized rate after rising only 0.5% earlier in the year, and equipment investment remaining robust.
CryptoSlate also pointed to inflation data that stayed above the Fed’s targets, noting the gross domestic purchases price index rose at a 5.7% annualized rate and core personal consumption expenditures increased 3.4%. The report cited Joseph Brusuelas of RSM US, who argued the widening trade deficit subtracted about one percentage point from headline growth and that the slowdown reflected trade rather than domestic demand, leaving the Fed less inclined to respond to the headline slowdown with easier policy.
Latest closeBitcoin $64,748.92 ▲1.3%