Bitcoin Dips to $63K as Rate Cut Hopes Dim Following Disappointing U.S. Inflation Report
Bitcoin dropped below $63,000 as cryptocurrencies fell due to new data showing increased inflation and slower growth in the U.S. in Q1. The U.S. government's preliminary report for Q1 GDP showed a growth of 1.6%, lower than the estimated 2.5% and down from 3.4% in Q4 of 2023. The GDP price index was higher than expected at 3.1%, up from 1.6% in the previous quarter. This inflation data led to a decrease in hopes for interest rate cuts this year, affecting risk assets across all markets. Major U.S. stock indexes began the trading session down nearly 2%, while the 10-year U.S. Treasury bond yield increased to 4.73%. Ether was also down 4%, trading at around $3,100. Altcoin majors, including Solana, Avalanche, and Aptos, fell 8%-9% before recovering some losses. The CoinDesk 20 Index declined 6%.
