US Core PCE Inflation Holds at 0.4% as GDP Growth Slows to 0.7% as BTC Trades Above 72k

The latest data for the Core PCE Price Index showed a monthly increase of 0.4%, matching both market expectations and the previous reading. The steady figure indicates inflation pressures remain persistent, with the Federal Reserve’s preferred inflation gauge continuing to show limited signs of easing in the short term.

Preliminary GDP Growth Falls Below Forecast

At the same time, the preliminary reading for U.S. Gross Domestic Product growth came in at 0.7% quarter over quarter, significantly below the 1.4% forecast and the previous 1.4% figure. The weaker-than-expected economic expansion suggests slowing momentum in the broader U.S. economy.

Market Implications for Dollar and Gold

The softer GDP data is generally viewed as negative for the U.S. dollar, as slower growth can reduce expectations for tighter monetary policy. In contrast, weaker economic performance often supports demand for safe-haven assets such as Gold, which tends to benefit when growth concerns increase.

BTC climbed 2% to break through $72,000 while U.S. equity futures slipped and the dollar strengthened, as altcoins and AI tokens joined a broader crypto rally.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.