Uh-oh, Bitcoin and Stocks Feel the Stagflation Pinch – What Now?

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So here’s the deal:

  • Bitcoin was cruising above $95,000, then—bam!—U.S. economic data came in like a wet towel. It reversed. Fast.
  • GDP turned negative in Q1. Surprise! (Not really.) All thanks to companies rushing to import stuff before tariffs hit. Oh, and prices? Yeah, they rose more than anyone hoped.
  • ADP said only 62,000 jobs were added in April. That’s the weakest since July 2024. Way to go, economy.

What was looking like a “yay, let’s make some money” morning has quickly turned into a “wait, is the sky falling?” moment as stagflation fears spread like a bad cold.

First, we got the ADP jobs numbers for April. They came in—well, let’s just say underwhelming. Only 62,000 private sector jobs? Everyone expected more like 108,000. This is the weakest since, you guessed it, July 2024. But hey, it’s not like we have better things to do, right?

Next up: the first-quarter GDP growth estimate, which came in at a disappointing -0.3%, instead of the expected +0.2%. Seems like companies were too busy importing stuff to avoid tariffs, which—surprise again—ended up hurting the GDP. Good job, everyone!

Let’s break it down: when imports go up but exports don’t, it drags down GDP growth. It’s like buying a bunch of stuff on sale, but then not selling anything. You’ve got a house full of stuff, but no money. Classic.

Oh, and don’t forget the Trump administration’s DOGE (not the coin, the policy, if you can call it that) messing things up. Government spending was a drag on GDP for the first time since 2022. So yeah, that’s fun.

And if that’s not enough for you, inflation decided to throw its own party. The Core PCE price index (the fancy measure of inflation) rose 3.5%, while experts were only hoping for 3.1%. So… let’s just say the inflation party’s still going strong. 🎉

Now, U.S. stocks are dropping faster than my hopes for an easy day. The Nasdaq is down 2%, and the S&P 500 is off by 1.5%. And guess what? Bitcoin is taking a hit too, slipping around 1% to about $94,300. It’s like a big ol’ financial downer. 📉

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2025-04-30 17:17