Core

United

Bitcoin

<img decoding="async" width="1536" height="864" src="https://coingape.com/wp-content/uploads/2024/03/Crypto-Market-Cap-Levels-1536x864-2.jpg" class="attachment-full size-full wp-post-image" alt="Bitcoin slips U.S. GDP Q1" style="float:right; margin:0 0 10px 10px;" srcset="https://coingape.com/wp-content/uploads/2024/03/Crypto-Market-Cap-Levels-1536x864-2.jpg 1536w, https://coingape.com/wp-content/uploads/2024/03/Crypto-Market-Cap-Levels-1536x864-2-300x169.jpg 300w, https://coingape.com/wp-content/uploads/2024/03/Crypto-Market-Cap-Levels-1536x864-2-1224x689.jpg 1224w, https://coingape.com/wp-content/uploads/2024/03/Crypto-Market-Cap-Levels-1536x864-2-768x432.jpg 768w, https://coingape.com/wp-content/uploads/2024/03/Crypto-Market-Cap-Levels-1536x864-2-678x381.jpg 678w, https://coingape.com/wp-content/uploads/2024/03/Crypto-Market-Cap-Levels-1536x864-2-150x84.jpg 150w" sizes="(max-width: 1536px) 100vw, 1536px">
Bitcoin and the broader financial markets faced a downturn as the United States’ Gross Domestic Product (GDP) revealed sluggish growth in the first quarter of 2024, casting a shadow on investor confidence. With the first quarter GDP figures falling short of expectations at a 1.6% annualized pace, concerns about inflationary pressures loom large, amplifying market volatility. 
<h2 id="span-data-preserver-spaces-true-us-gdp-grows-1-6-in-span-span-data-preserver-spaces-true-q1-span">US GDP Grows 1.6% In&nbsp;Q1</h2> 
The latest data from the Bureau of Economic Analysis paints a&nbsp;somber&nbsp;picture of the&nbsp;US economy, with first-quarter <a rel="nofollow" href="https://www.bea.gov/data/gdp/gross-domestic-product" target="_blank">U.S. GDP</a> growth clocking in at a modest 1.6%, well below the anticipated 2.5%. A commentary by The Kobeissi Letter underscored the severity of the situation, highlighting a worrying juxtaposition of weakening economic growth and surging inflation.&nbsp; 
Meanwhile, the Core PCE Price Index witnessed a substantial jump from 2.0% to 3.7%, far surpassing estimates, while the PCE inflation data surged from 1.8% to 3.4%, stoking fears of an impending hawkish stance from the Federal Reserve. 
Amid that, investor sentiment took a hit as concerns over escalating inflation and lackluster economic performance weighed heavily on <a href="https://coingape.com/glossary/cryptocurrency/" target="_blank" rel="noopener">cryptocurrency</a> prices. Despite ongoing market sell-offs preceding the GDP release, the dismal data exacerbated the downward trajectory.&nbsp; 
In addition, with expectations of a delayed rate cut by the Fed, recent gains in <a href="https://coingape.com/glossary/bitcoin/" target="_blank" rel="noopener">Bitcoin</a> and other cryptocurrencies were swiftly wiped out, signaling a challenging road ahead for digital asset markets. 
Also Read: <a href="https://coingape.com/bitcoin-bulls-scale-back-leveraged-bets-post-halving-demand-cools/" target="_blank" rel="noopener">Bitcoin Bulls Scale Back Leveraged Bets, Post-Halving Demand Cools</a> 
<h2 id="span-data-preserver-spaces-true-what-s-next-span">What’s Next?</h2> 
Following the gloomy GDP data, the U.S.&nbsp;10-year Bond Yield rose 1.89% to $4.743, while the&nbsp;U.S.&nbsp;Dollar Index Futures noted a surge of 0.10% to $105.795.&nbsp;Meanwhile, the gloomy data&nbsp;along&nbsp;with&nbsp;the hotter-than-anticipated <a href="https://coingape.com/education/what-is-inflation-what-causes-it-and-its-effects-4-examples-of-inflation/" target="_blank" rel="noopener">inflation</a> data for the first&nbsp;quarter&nbsp;suggests&nbsp;a further delay in the Fed’s rate cut decision. 
The <a href="https://coingape.com/fed-rate-cut-delay-sparks-crypto-volatility-concerns-despite-halving/" target="_blank" rel="noopener">Federal Reserve</a> has maintained a hawkish stance lately&nbsp;while hinting&nbsp;at a potential delay in their rate cut plans.&nbsp;Amid this,&nbsp;the recent data has further dampened the investors’ sentiment, as the inflation&nbsp;still&nbsp;remained higher despite the higher policy rates. 
Meanwhile, following the GDP data, the <a href="https://coingape.com/price/bitcoin/" target="_blank" rel="noopener">Bitcoin price</a> fell 4.53% to $63,091.65, with its trading volume soaring 43.75% to $34.67 billion. Amid the recent selloff, market experts have warned of a further slump in the BTC price. 
Notably, the dip in the BTC price also triggered a broader <a href="https://coingape.com/why-crypto-prices-are-taking-a-dip-today/" target="_blank" rel="noopener">crypto market crash</a>. As of writing, the global crypto market cap fell 4.85% to $2.33 trillion. 
Also Read: <a href="https://coingape.com/trending/how-is-bitcoin-halving-adjusting-the-market/" target="_blank" rel="noopener">How Is Bitcoin Halving Adjusting The Market?</a> 
The post <a href="https://coingape.com/bitcoin-breaks-lower-us-gdp-slows-1-6-hints-hot-pce-inflation/">Bitcoin Breaks Lower As US GDP Slows To 1.6%, Hints At Hot PCE&nbsp;Inflation</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

Bitcoin Breaks Lower As US GDP Slows To 1.6%, Hints At Hot PCE Inflation

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