Bitcoin $BTC held firm around $95,000 as the U.S. economy posted its first contraction in five years, sparking renewed recession concerns tied to President Trump’s tariff policies. Analysts had expected 0.3% annualized growth for Q1, but the economy instead shrank by that same margin—marking the first decline since Q1 2022.
Markets were further rattled by a disappointing ADP jobs report showing just 62,000 jobs added in April, half of expectations. Meanwhile, Personal Consumption Expenditures also cooled, though the full impact of Trump’s tariffs is yet to materialize.
BTC previously rallied in response to last year’s Federal Reserve rate cuts, which brought the benchmark rate down to 4.25%–4.50%. However, in December, the Fed adopted a more cautious tone, citing uncertainty from Trump’s evolving trade and immigration policies—factors that may now be complicating efforts to stabilize prices. Recent data points to growing economic strain, with Trump’s tariffs dragging on consumer sentiment and broader economic performance.
In contrast, Bitcoin continues to benefit from shifting investor sentiment. Standard Chartered noted a growing divergence between gold ETF and spot Bitcoin ETF flows, suggesting capital is moving from gold into BTC. Geoffrey Kendrick, head of digital assets research at the bank, pointed to this trend as a sign Bitcoin could be poised for a major price surge.
Price Action Summary
BTC showed bullish momentum over the past week, starting with gains of 0.61% on Saturday and 0.22% on Sunday, climbing to $85,224. The rally accelerated on Monday with a nearly 3% jump to $87,508, and surged 7% on Tuesday to $93,373. Although Wednesday brought volatility and selling pressure, BTC edged slightly higher to $93,749 before briefly dipping to $91,693 on Thursday. It quickly rebounded to end the day at $94,009.
The positive trend continued Friday, with BTC up almost 1% to $94,776. However, the weekend brought mild losses, including a 0.99% drop to $93,802 on Sunday. BTC opened the new week with a 1.29% gain to hit $95,010, but slipped again Tuesday, closing at $94,341. On Wednesday, it dipped marginally to $94,160 amid choppy trading.
As of the current session, BTC is up over 1%, trading at $95,365. If it maintains support above $95,000, the next key resistance lies near $97,000. A breakout could fuel bullish momentum, potentially driving BTC to test the psychological $100,000 level.
