Bitcoin struggles to turn US GDP miss into bullish catalyst as strong spending backs Fed caution

Bitcoin briefly topped $65,000 on Thursday after US economic growth fell short of forecasts.Data from CryptoSlate show the largest cryptocurrency trading near $64,729 as of press time after reaching an intraday high of $65,071 and recovering from a low of $63,205.The advance followed data showing the US economy expanded at a 1.5% annualized rate in the second quarter. That was below both the first quarter’s 2.1% pace and analysts' forecast of 2.1% growth.The headline miss initially offered a favorable setup for Bitcoin because weaker growth can increase pressure on the Federal Reserve to ease monetary policy. Lower rates would reduce the appeal of cash and government bonds while improving liquidity conditions for risk assets.Strong consumer spending and persistent inflation, however, offered little evidence that lower interest rates were approaching.Strong domestic demand limits the dovish signalConsumer spending and equipment investment showed that the slowdown was concentrated in trade rather than domestic demand.Household spending accelerated at a 3.2% annualized rate during the quarter after rising only 0.5% in the first three months of the year. Business investment in equipmen...