CNBC News - CRYPTO WORLD: Bitcoin dips after Q1 GDP contraction raises recession fears
US Economy Shrinks, Crypto Going To Take a Roller-Coaster Ride as Everyone Hunts Safe Bets!
1. The U.S. economy contracted 0.3% in the first quarter of 2025-the first quarterly decline since early 2022-primarily due to a record surge in imports as businesses front-loaded purchases ahead of new tariffs, stoking renewed recession fears.
2. In response, Bitcoin dipped below $95,000, while other major cryptocurrencies such as Ethereum and Solana each fell by roughly 3% on the day.
3. The broader crypto market traded lower alongside equity indices, as investors reduced risk exposure amid rising concerns over trade policy volatility and its knock-on effects on inflation and growth.
4. This pullback underscored Bitcoin's persistent correlation with traditional financial markets and highlighted how macroeconomic drivers- especially tariff-related trade distortions-- continue to sway crypto price action.
5. Market participants are now closely watching upcoming labor data and Federal Reserve policy signals to gauge the outlook for risk assets in a potentially stagflationary environment.
full video link: https://youtu.be/iHgKl8ayCU4?si=YlxZDDQQnR6fi205
More sources:
Reuters:
https://www.reuters.com/markets/wealth/muddied-gdp-report-leaves-investors-with-little-clarity-about-economic-risk-2025-04-30/?utm_source=chatgpt.com
Decrypt:
https://decrypt.co/317101/bitcoin-falls-as-u-s-economy-contracts-first-time-in-3-three-years