Stagflation Risks Prompt Concerns for Bitcoin as US Economic Data Shows Slower Growth and Rising Inflation
Main Idea
Recent US economic data indicating slower growth and rising inflation has raised concerns about stagflation, which could negatively impact both traditional and cryptocurrency markets, including Bitcoin.
Key Points
1. The US Services PMI for July was 50.1, below expectations of 51.5, showing slower growth in the service sector and nearing contraction levels.
2. The employment index fell to 46.4, while the price index rose to 69.9, the highest since October 2022, signaling rising inflation pressures.
3. Stagflation concerns led to declines in major US stock indices (Dow Jones, S&P 500, Nasdaq) and a 1% drop in Bitcoin.
4. Market expectations for Federal Reserve rate cuts shifted from three to two this year, with potential further adjustments if stagflation signals strengthen.
5. Bitcoin has shown increasing sensitivity to economic data, with altcoins largely following its movements.
Description
Are You Chasing New Coins? Catch the newest crypto opportunities. Be the first to buy, be the first to win! Click here to discover new altcoins! US stagflation risks
Latest News
- Ripple’s CTO Develops Custom XRPL Monitoring Tool Amidst XRP’s August Rally Challenges2025-08-07 00:37:22
- TOWNS Crypto Faces Potential Further Losses Amid Whales’ Selling Pressure and Retail Exodus2025-08-07 00:19:24
- HBAR Faces Key Support at $0.25 Amid Signs of Potential Reversal After 130% Rally2025-08-07 00:02:55
- XRP Shows Potential for Further Gains as Whale Activity and Short Squeeze Dynamics Emerge2025-08-06 23:36:48
- Carlos Ramirez Declines Involvement with Surging Troll Meme Coin Despite Legal Rights and Community Interest2025-08-06 23:34:24