Key points:
US GDP shrank in Q1, raising recession alarms while also prompting calls for Fed rate cuts.
Bitcoin dropped to $92,910 as GDP figures were released, but sustained buy-side demand could provide support.
Today’s crypto derisking is likely transitory; market fundamentals remain strong.
Bitcoin (BTC) price took an abrupt tumble as data showed the US gross domestic product (GDP) retracting by 0.3% in Q1, raising alarms among analysts anticipating a recession. Following the news, BTC price dropped to an intra-day low of $92,910, while the DOW and S&P 500 fell by 1% and 1.3% respectively.
While the GDP figures are shocking at face value, CNBC pointed out that the drop was primarily due to “a surge in imports ahead of President Donald Trump’s tariffs.” Imports are subtracted from GDP, suggesting that the pullback is more transitory than endemic.
After an initial 1% price drop, Bitcoin