The value of Bitcoin and other financial markets decreased because the United States' economy didn't grow much in the first three months of 2024. The Gross Domestic Product (GDP) for this period was only 1.6%, which was lower than what experts predicted. This made investors worry about inflation getting worse and made the market more unpredictable.

The Bureau of Economic Analysis shared this news about the US economy, saying that it didn't do as well as expected in the first quarter of the year. Instead of growing by 2.5%, it only grew by 1.6%. A report by The Kobeissi Letter talked about how serious this is, especially when inflation is going up quickly.

At the same time, the Core PCE Price Index, which measures inflation, went up from 2.0% to 3.7%, much more than what people thought it would be. The PCE inflation data also went up from 1.8% to 3.4%, which worried people about the Federal Reserve making changes to control inflation.

Because of all this, investors started to feel unsure and worried about inflation and the economy not doing well. This caused the prices of cryptocurrencies, like Bitcoin, to go down even more. Even though people were already selling before the GDP news came out, the bad numbers made things worse.

Also, because people now think the Federal Reserve might not lower interest rates as soon as they hoped, the gains that Bitcoin and other cryptocurrencies had made recently disappeared quickly. This shows that it might be hard for digital money markets in the near future.

In conclusion, the slowdown in the US economy and the rise in inflation made investors nervous, leading to a drop in the value of Bitcoin and other cryptocurrencies. The uncertainty about future interest rate changes by the Federal Reserve added to the market's challenges.