Bitcoin Plummets Below $62,000 Amidst Stagflation Fears in US Economy

On April 25, Bitcoin’s value fell below $62,000 as a result of the release of “stagflationary” macro data in the United States. This data caused market unrest, and when Wall Street opened, investors were greeted with troubled sentiment. 

The US Q1 gross domestic product (GDP) came in significantly lower than expected at 1.6%, which added to the concerns. This figure was much lower than the predicted rate of 2.5% and was attributed to the ongoing COVID-19 pandemic’s impact on the economy. 

At the same time, there was an unexpected increase in prices, which further added to investor unease. This rise in prices highlighted the challenging task of taming inflation that lies ahead for the Federal Reserve. The central bank has been trying to balance the need for economic growth with the need to prevent inflation from spiraling out of control.

Overall, the current macroeconomic situation in the United States is causing significant concerns for investors, and the Federal Reserve has a difficult job ahead of it in attempting to balance economic growth and inflation.

According to the most recent update from CME Group’s FedWatch Tool, the chances of a rate cut taking place at the upcoming Federal Open Market Committee (FOMC) meeting on May 1 are quite low, at just 6.3%. This tool uses futures market pricing to estimate the probability of changes in the Federal Reserve’s monetary policy. 

While this figure is subject to change as the meeting approaches and more information becomes available, it suggests that the market is not currently anticipating a significant shift in Fed policy.

Read More: Binance Set to Return to Indian Crypto Market After Compliance Fine – Blockmagic

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