Bitcoin briefly topped $65,000 on Thursday after the U.S. economy grew at a slower-than-expected 1.5% annualized rate in the second quarter, missing the 2.1% forecast and down from Q1's 2.1% pace. The intraday high of $65,071 came as traders digested the GDP miss and the Federal Reserve's decision to hold its benchmark rate at 3.50% to 3.75% at its Wednesday meeting — though three officials voted for a hike.
The GDP print
The Commerce Department's report showed consumer spending accelerated sharply, rising at a 3.2% annualized rate in Q2 compared to just 0.5% in Q1. That strength was offset by a widening trade deficit, which subtracted about a percentage point from headline growth. Core PCE inflation held at 3.4%, still above the Fed's 2% target. Business investment in equipment remained robust, with analysts tying that to continued AI infrastructure spending.
Fed holds firm
The Federal Reserve left its benchmark rate in the 3.50%-3.75% range at the conclusion of its two-day meeting on Wednesday. The decision wasn't unanimous — three officials dissented in favor of a rate increase, signaling internal division over how to handle persistent inflation. The central bank has now held rates steady for three consecutive meetings after a series of hikes earlier in the year.
Bitcoin's response
The GDP miss gave Bitcoin a quick lift. After trading in the mid-$63,000 range for much of the week, the asset jumped past $65,000 on Thursday before settling near $64,729. The move came after repeated attempts to push Bitcoin below the $62,000-$63,000 support zone failed ahead of the Fed meeting. That zone is significant: the largest concentration of Bitcoin investor cost bases sits between $62,000 and $69,000, with long-term holders controlling about half of that supply.
Market signals
Despite the price pop, broader market activity remains subdued. The three-month Bitcoin futures basis has stayed below the two-year Treasury yield since February, reducing the incentive for institutional carry trades. Spot Bitcoin trading volume has fallen to its lowest level since 2019, and exchange deposits and withdrawals are near three-year lows. U.S. spot Bitcoin ETFs returned to modest net outflows after briefly attracting fresh capital in mid-July. The next Fed meeting is scheduled for September, with markets watching for any shift in tone on rates.
