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<p>The post <a href="https://coinpedia.org/news/one-thing-could-crash-bitcoin-and-crypto-in-the-coming-months/">Weak Growth, High Inflation: Is a Massive Crypto Crash Coming?&nbsp;</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>Recent signals from the United States economy are stirring fears of stagflation, casting a shadow over the cryptocurrency world, particularly <a href="https://coinpedia.org/price-prediction/bitcoin-price-prediction/">Bitcoin</a>. ELJA, a prominent figure in crypto trading, has highlighted some key events, including disappointing GDP figures and a notable rise in core inflation, indicating rough economic waters ahead.</p> 
<p>Here’s everything you need to stay aware and safe.</p> 
<h2 class="wp-block-heading" id="h-economic-insights-a-close-look"><strong>Economic Insights: A Close Look</strong></h2> 
<p>The US GDP has taken a dive to a mere 1.6%, revealing cracks in the economic foundation. At the same time, the US core Personal Consumption Expenditures (PCE) index has shot up from 2% to a staggering 3.7%, marking an 85% increase.</p> 
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   <p lang="en" dir="ltr">𝗧𝗵𝗶𝘀 𝗢𝗻𝗲 𝗧𝗵𝗶𝗻𝗴 𝗖𝗼𝘂𝗹𝗱 𝗖𝗿𝗮𝘀𝗵 𝗕𝗶𝘁𝗰𝗼𝗶𝗻 𝗔𝗻𝗱 𝗖𝗿𝘆𝗽𝘁𝗼 𝗜𝗻 𝗧𝗵𝗲 𝗖𝗼𝗺𝗶𝗻𝗴 𝗠𝗼𝗻𝘁𝗵𝘀…</p>— Elja (@Eljaboom) <a href="https://twitter.com/Eljaboom/status/1784097560031859003?ref_src=twsrc%5Etfw">April 27, 2024</a>
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<p>This double whammy of sluggish growth and surging inflation paints a troubling picture—a classic sign of stagflation, where an economy faces stagnant growth alongside rising prices.</p> 
<h2 class="wp-block-heading" id="h-fed-s-dilemma">Fed’s Dilemma</h2> 
<p>The prospect of stagflation presents a unique challenge for the <a href="https://coinpedia.org/news/bitcoin-price-forecast-amidst-cpi-release-and-fomc-meeting-minutes/">Federal Reserve (FED)</a>. Traditionally, during economic slowdowns, the FED cuts rates to spur growth. Conversely, when inflation rises, it raises rates to keep prices in check. However, in the stormy waters of stagflation, where both conditions collide, policymakers find themselves in uncharted territory.</p> 
<p><strong>Insights from the Past </strong></p> 
<p>Drawing on historical stagflation episodes, particularly in the turbulent 1970s and 1980s, ELJA sees potential trouble ahead for cryptocurrencies. During those times, stock markets weathered significant downturns. If history repeats itself, cryptocurrencies like Bitcoin, often influenced by traditional market movements during turbulence, could face intensified selling pressure.</p> 
<p>Also Read: <a href="https://coinpedia.org/news/top-altcoin-picks-for-2024-2025-crypto-bull-run/">Top Altcoin Picks for 2024–2025 Crypto Bull Run</a></p> 
<h2 class="wp-block-heading" id="h-awaiting-the-fomc-verdict"><strong>Awaiting the FOMC Verdict</strong></h2> 
<p>With the <a href="https://coinpedia.org/glossary/fomo/">Federal Open Market Committee (FOMC)</a> meeting just four days away, all eyes are on the decisions that will shape monetary policy in the near future. The outcomes of this crucial gathering could impact both conventional financial markets and the cryptocurrency world in the months ahead.</p> 
<p>Also Read: <a href="https://coinpedia.org/news/how-bny-mellons-bitcoin-etf-stake-and-dividend-payout-reflect-changing-financial-landscape/">Wall Street Goes Crypto! BNY Mellon Invests in Bitcoin ETFs</a></p> 
<p>As investors anxiously await the FOMC’s decision, the crypto market remains on edge, closely monitoring economic indicators and emerging developments that could sway market sentiment and asset prices.</p> 
<p><strong>One thing’s for sure: the next few days will be a rollercoaster ride for investors. Stay tuned for the latest updates on the FOMC meeting and its impact on the crypto market.</strong></p>

Weak Growth, High Inflation: Is a Massive Crypto Crash Coming?

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