Bitcoin's value decreased recently, reaching a low of $62,794 due to US data impacting the market. What is stagflation and why does it affect cryptocurrencies? Let's dive into the details.

Stagflation refers to a situation where there is high unemployment, slow economic growth, and increasing prices. The US GDP for Q1 fell short of expectations at 1.6%, resulting in a 2% drop in US markets at the beginning of the day.

In light of this stagflationary data, Bitcoin prices started to decline. The Kobeissi Letter discussed the implications of the GDP figure being lower than expected. The upcoming decisions from the Fed about interest rates are now crucial.

Looking ahead, the outlook for cryptocurrencies is uncertain. With strong core PCE numbers, rising inflation, stagnant unemployment rates, and a contracting economy, the Fed may face tough decisions. A rate cut could deviate from the 2% inflation target. As of now, expectations for a rate cut at the Fed's meeting on May 1 are low.

In the midst of this uncertainty, analysts have different opinions. Crypto Chase predicts Bitcoin could rise to $68,000, while Crypto Tony suggests that after a consolidation period, BTC could achieve new highs. On the other hand, analyst Caleb Franzen sees $59,530 as a critical support level for short-term investors. If Bitcoin falls below this level, he would turn bearish.