Bitcoin Falls as U.S. Economy Contracts for First Time in 3 Three Years
Bitcoin's price dropped below $95,000, settling around $94,300, following a report from the U.S. Bureau of Economic Analysis indicating a 0.3% contraction in the economy for Q1, raising recession concerns linked to President Trump's tariffs. Economists had anticipated a 0.3% growth. This marked the first quarterly decline since Q1 2022. Altcoins like Ethereum and Solana also fell by 3%. Bitcoin's previous rise was attributed to the Federal Reserve's rate cuts, but a cautious stance emerged due to potential trade policy shifts under Trump. Tariffs, including 25% on steel and aluminum and 10% on various imports, have been implemented despite a recent pause on some tariffs. U.S. Treasury Secretary Scott Bessent downplayed potential disruptions for retailers, despite reports of declining shipping volumes at the Port of Los Angeles.
