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Bitcoin price faces a crucial weekend test as US growth collapses to 0.7% while inflation stays stubborn

CryptoSlate
Bitcoin faces a critical test as weak US Q4 GDP growth of 0.7% and sticky inflation clash with an energy shock ahead of the Fed meeting.

Summary

The US economy showed alarming weakness, with Q4 2025 GDP revised down sharply to 0.7% and real consumer spending barely rising, even before factoring in the recent oil price spike following conflict in the Middle East. Core PCE inflation remains sticky at 3.1%, well above the Fed's 2% target. This creates a difficult macro environment for risk assets: slowing growth, persistent inflation, and an energy shock that could worsen both. Bitcoin, trading around $70,600, shows fragile internal stabilization, with ETF inflows returning and funding turning negative. However, this rebound runs directly into the worst possible macro mix. The upcoming Fed meeting on March 17-18 will be crucial, as markets anticipate a hold, but Fed Chair Jerome Powell's commentary on the deteriorating growth-inflation trade-off will dictate whether Bitcoin can hold its ground or risks retesting the $60,000–$69,000 demand zone.

(Source:CryptoSlate)