US GDP Missed Expectations — But Bitcoin Didn't Rally. Here's Why the Fed Still Isn't Budging

WHY IT MATTERS

Think of GDP (Gross Domestic Product) as a report card for the entire US economy — it measures how much the country produced and earned in a given period. When GDP comes in lower than expected, it can sometimes be good for investments like Bitcoin because it might push the Federal Reserve (the central bank that controls interest rates) to lower rates, making borrowing cheaper and encouraging people to invest in riskier assets. But this time, even though the overall grade was lower, one key subject — consumer spending — was still strong. That told the Fed there's no emergency, so they're likely to keep interest rates high for now. For crypto investors, this matters because when rates stay high, money tends to flow toward safer investments rather than riskier ones like Bitcoin.