US GDP Contracts 0.2%, Bitcoin Holds Steady Amid Inflation

16:04 29.05.2025 CVJ.AI Editorial Office

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The U.S. economy shrank by 0.2% in Q1 2024, while Bitcoin remained resilient above $108,000. Inflation and slowing demand complicate the Fed’s rate-cut plans.

US GDP contracted 0.2% in Q1 2024, with inflation-adjusted demand falling sharply.
Bitcoin showed resilience, dropping just 0.4% despite economic uncertainty.
The Fed faces a policy dilemma as inflation stays high despite slowing growth.

📎 Related coverage from: cryptoslate.com

Related Tags: BitcoinFederal Reserve

Other Tags: Atlanta Fed, Bureau of Economic Analysis, Labor Department

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US GDP Contracts 0.2%, Bitcoin Holds Steady Amid Inflation

The U.S. economy contracted at an annualized rate of 0.2% in Q1 2024, with inflation-adjusted final sales dropping 2.9% as consumer spending slowed. Corporate profits fell 3.6%, ending a two-year growth streak, while jobless claims rose slightly. Despite the economic slowdown, inflation remains stubbornly high, with the GDP price index at 3.7% and core PCE at 3.4%, both above the Fed’s 2% target. Bitcoin dipped only 0.4% post-data release, holding above $108,000. The Fed is expected to maintain higher interest rates until inflation cools and labor market slack becomes evident. Forward-looking indicators suggest a mild rebound in Q2, but risks of prolonged economic weakness persist.

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