Bitcoin Struggles to Hold $65,000 as Strong Spending Dulls Rate Cut Hopes

Bitcoin recently touched $65,000 after fresh numbers showed US economic growth slowed down in the second quarter. The headline gross domestic product reading of 1.5% missed analyst forecasts, which initially sparked hopes that the Federal Reserve might soon lower interest rates to support the economy. Lower borrowing costs typically boost liquidity and help risk assets like cryptocurrency.

However, a closer look at the data revealed that domestic demand remains very strong. Household spending accelerated during the quarter, and business investments in artificial intelligence infrastructure stayed high. At the same qual time, inflation metrics stayed well above the two percent target. This strength gives the central bank little reason to rush into easing monetary policy anytime soon.

Market conditions also show that large institutional investors lack strong incentives to chase a rally right now. Government bond yields currently offer better returns than standard crypto basis trades without the added volatility. Spot trading volumes and exchange activity remain quiet, while exchange traded funds have seen modest outflows.

Traders are now watching the key price band between $62,000 and $68,000, where a large number of coins last changed hands. Many short term holders who bought near these levels might sell to break even if prices rise further. A sustained push past $69,000 will be the main test for whether new demand can drive a larger breakout.