Analysts Say the Fed May Pivot to Favor Bitcoin
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On Wednesday, U.S. macroeconomic reports put pressure on the Bitcoin and cryptocurrency markets, including stagflationary data, regressive GDP figures, and signs of weak private sector employment growth. In April, the private sector added only 62,000 jobs, far below the expected 108,000 and March's 147,000. The U.S. GDP shrank by 0.3% in the first quarter, marking the first negative growth in nearly a year, contrary to the expected 0.2% growth. The Personal Consumption Expenditures (PCE) index showed inflation slowing to an annual growth rate of 2.3%, which is also a key indicator for the Federal Reserve's decision-making. Despite this, Bitcoin briefly fell below $94,000 and dropped by 1%, with major cryptocurrency assets like Ethereum and Solana also declining, and the overall market fell by nearly 4%. In traditional markets, the S&P 500, Nasdaq, Dow Jones, and New York Stock Exchange indices all experienced declines. The Federal Reserve will hold a meeting on May 6-7 to decide whether to cut interest rates or maintain the current fund rate.
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