Bitcoin struggles to turn US GDP miss into bullish catalyst as strong spending backs Fed caution
Bitcoin briefly rose above $65,000 after weaker-than-expected US Q2 GDP growth, but the move was limited by stronger underlying demand and sticky inflation. The economy grew 1.5% annualized versus 2.1% expected, mainly because of trade, while consumer spending and business investment stayed strong. Core inflation remained above the Fed’s target, reducing the odds of near-term rate cuts. That weakens the bullish case for Bitcoin: easier policy and better liquidity look less likely. Institutional demand is also muted, with Bitcoin futures yields below Treasury yields, low spot volume, quiet exchange activity, and modest ETF outflows. Bitcoin is still trading inside a dense $62,000–$68,000 cost-basis range, where many holders may sell near breakeven. A sustained break above $68,000–$69,000 with stronger volume and ETF inflows would be needed to signal a real breakout.
