Bitcoin Rebound Depends on US GDP, Core PCE & Fed Rate Cuts
XS.com market analyst Linh Tran warns that Bitcoin’s near-term outlook will hinge on upcoming US economic data, particularly preliminary GDP and core PCE inflation readings. A trend of slowing growth and easing inflation would strengthen the Federal Reserve’s case for rate cuts, injecting liquidity and laying the groundwork for a measured Bitcoin recovery. Conversely, hotter-than-expected data could keep investors on the defensive, extend a short-term pullback and delay risk-on flows. Traders should watch these releases closely as key catalysts for market direction.
Bullish
This analysis is bullish because slowing US growth and easing core PCE inflation increase the likelihood of Fed rate cuts, which historically boost liquidity and support risk assets like Bitcoin. In past cycles, dovish Fed pivots have triggered rallies in BTC as investors seek higher-yielding assets. In the short term, traders will react to economic releases, with dovish surprises igniting quick upside. Over the medium to long term, an easing monetary stance could underpin sustained buying pressure and reduced volatility, provided inflation and growth trends remain favorable.