Bitcoin Tops $65,000 Briefly as GDP Miss Fades

Bitcoin briefly topped $65,000 on Thursday after the US economy expanded at a 1.5% annualized rate in the second quarter. Price data showed an intraday high just above $65,000, an earlier low near $63,200 and trading around $64,700 later in the session.

The 1.5% GDP reading missed estimates of about 2.1% and trailed the first quarter’s 2.1% pace. The slowdown on the headline measure reflected trade flows rather than weak domestic demand: household spending rose at a 3.2% annualized rate and business investment in equipment remained robust.

Joseph Brusuelas, principal and chief economist at RSM US, noted: ‘Once one looks beneath the topline, growth looks much firmer and inflationary.’ He estimated the widening trade deficit subtracted roughly one percentage point from headline growth and added that many imports reflected equipment needs tied to artificial intelligence projects.

Inflation measures stayed elevated in the quarter. The gross domestic purchases price index rose at a 5.7% annualized rate and core personal consumption expenditures increased 3.4%, above the Federal Reserve’s 2% target. At its last meeting, the Fed held the federal funds rate at 3.50% to 3.75%, with three officials voting in favor of a rate increase.

Market structure and on-chain data limited the cryptocurrency’s advance. The three-month bitcoin futures basis remained below the two-year Treasury yield since February, removing a yield advantage for the cash-and-carry trade used by institutional desks. That dynamic left Treasuries offering competitive returns relative to taking crypto volatility.

Spot trading volume measured in bitcoin fell toward its lowest level since 2019, and combined exchange deposits and withdrawals were near multi-year lows. US spot bitcoin exchange-traded funds saw brief inflows in mid-July before returning to modest net outflows. On-chain metrics showed a taker buy-sell ratio near 1.0 and short positions were unable to force a breakdown below recent support.

Analysts identify a dense investor cost base between about $62,000 and $68,000. Long-term holders account for roughly half of that supply; shorter-term investors hold the remainder and may sell as prices approach their entry points. Aggregate short-term holder cost basis is near $69,000, which analysts view as the next test for upward momentum. Analysts say a sustained close above $68,000–$69,000 alongside higher spot volumes and renewed ETF inflows would be cited as evidence of fresh demand.

If those conditions are not met, bitcoin remained rangebound near the populated $62,000–$68,000 band as investors continued to monitor inflation readings and monetary policy indications.