Weak U.S. economic data may prompt The Federal Reserve (FED) to turn dovish, which could benefit Bitcoin.

On May 1, Bitcoin briefly fell below the $94,000 mark after the release of U.S. macroeconomic data on Wednesday, down 1% on the day, according to TheBlock. Major altcoins such as Ethereum and Solana fell in tandem, and the total crypto market capitalization retraced nearly 4%. The U.S. economy contracted 0.3% in the first quarter, below expectations for 0.2% growth, core PCE rose 2.6% year-over-year in March, unchanged from expectations but below the revised 3.0% in February, and ADP jobs added 62,000 jobs in April, down sharply from 147,000 in March. David Hernandez, crypto investment expert at 21Shares, noted: "Fed funds futures show that the market is now pricing in the Fed potentially cutting interest rates more than 4 times this year. Against the backdrop of slowing inflation and recession signals, policymakers' balancing act will be key in the coming weeks." Kirill Kretov, senior automation expert at CoinPanel, believes that a rate cut will be positive for bitcoin through a threefold mechanism: a weaker dollar, improved liquidity, and a decline in Treasury yields. "The -0.3% GDP reading, coupled with President Trump's increased pressure on the Fed, significantly increases the probability of a dovish policy shift. Against the backdrop of Bitcoin's current thin liquidity, even modest inflows could drive prices up sharply." The consensus is that weak economic data could force the Fed to start an early easing cycle.