Weak U.S. economic data could prompt the Federal Reserve to turn dovish, and bitcoin could benefit

After the release of US macroeconomic data on Wednesday, Bitcoin once fell below the $94,000 mark, falling by 1% in the day. Major counterfeit products such as Ethereum and Solana fell simultaneously, and the total market value of cryptocurrencies retreated by nearly 4%. The US economy contracted by 0.3% in the first quarter, lower than the expected growth of 0.2%. Core PCE rose by 2.6% year-on-year in March, the same as expected but lower than the revised value of 3.0% in February. ADP employment added 62,000 jobs in April, a significant decrease from the 147,000 in March.
David Hernandez, crypto investment expert at 21Shares, said: "Fed funds futures show that the market now expects the Federal Reserve to cut interest rates more than four times this year. Against the backdrop of slowing inflation and recession signals, policymakers' balancing act will be key to market movements in the coming weeks."
Kirill Kretov, senior automation expert at CoinPanel, believes that the rate cut will benefit Bitcoin through a triple mechanism: a weaker dollar, improved liquidity and lower Treasury yields. "The probability of a dovish policy shift increases significantly when the -0.3% GDP data is combined with President Trump's increased pressure on the Federal Reserve. In the current context of thin liquidity in Bitcoin, even moderate capital inflows could drive prices sharply higher." The market generally believes that weak economic data may force the Federal Reserve to start an easing cycle earlier.