The Bitcoin price briefly fell below $63,000 today. Crypto prices plummeted following the release of new data pointing to higher inflation and slower economic growth in the United States in the first quarter of 2024.

The US government’s preliminary GDP report showed growth of just 1.6% for the first quarter, significantly lower than the estimated 2.5% and also lower than the 3.4% in the fourth quarter of 2023. At the same time, the GDP price index at 3.1% was slightly higher than expected, and also higher than the 1.6% of the previous quarter.

Financial markets under pressure due to disappointing inflation figures

The disappointing inflation figures are making investors nervous, further dissipating hopes for interest rate cuts this year. This had a negative impact on the financial markets.

Major US stock market indexes such as the S&P 500 and the tech-oriented Nasdaq started the trading day with a decline of almost 2%, while the yield on the 10-year US Treasury bond rose 8 basis points to 4.73%, the highest level since November.

Crypto market is hit hard

Bitcoin prices hit a low of $62,800 today before recently recovering to $64,000. Ether (ETH) also fell 4% to a price of around $3,100.

The major altcoins saw an even sharper decline. The native tokens of layer 1 networks like Solana (SOL), Avalanche (AVAX), and Aptos (APT) all fell 8%-9% before recovering some of their losses. The broad market benchmark, the CoinDesk 20 Index (CD20), fell 6%.

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