Analyst: US Q1 GDP Unexpectedly Shrinks, Fed's Dovish Turn Could Benefit Bitcoin
According to The Block, the United States' GDP in the first quarter of 2025 decreased by an annualized 0.3%, marking the first negative growth since 2022. BRN's Chief Research Analyst Valentin Fournier pointed out that the slowdown in economic growth and cooling inflation might prompt the Federal Reserve to adopt a more dovish monetary policy stance, providing support for risk assets like Bitcoin. The current bullish price trend is the main demand driver, and a new round of liquidity injection could benefit alternative risk assets like cryptocurrencies more than stocks, as stocks may struggle in an economic slowdown.
Since "Liberation Day," Bitcoin has risen over 13%, reaching a two-month high, while the S&P 500 index has gained less than 1% in the past 30 days, with Bitcoin outperforming the stock market.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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