The Bitcoin price dropped as U.S. economic data revealed stagflation concerns, impacting both Bitcoin and stock markets. Recent reports indicated a negative GDP growth of 0.3% for the first quarter and disappointing job growth, with only 62,000 private sector jobs added in April, significantly below estimates. This marked the weakest employment growth since July 2024. Economists noted that increased imports, driven by businesses anticipating tariffs, negatively affected GDP. Additionally, inflation was higher than expected, with the Core PCE price index rising 3.5% versus predictions of 3.1%. Following this data, major U.S. stock indices, such as the Nasdaq and S&P 500, fell by 2% and 1.5%, respectively, which contributed to a nearly 1% decline in Bitcoin, now priced at approximately $94,300. This market downturn triggered fears of ongoing stagflation, prompting investors to reassess their positions in cryptocurrencies and equities.

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