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Bitcoin falls below $93K following US GDP data showing shrinking economy and raising recession alarms

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Crypto Expert Reveals The Possibility Of Bitcoin Reaching 500000
Crypto Expert Reveals The Possibility Of Bitcoin Reaching 500000

Important points 

  • The US GDP fell in the first quarter, raising alarms about a recession and prompting demands for Fed rate reductions.

  • Bitcoin fell to $92,910 after GDP data was released. However, sustained demand from the buy-side could support it. 

  • The crypto-derisking today is most likely transitory. Market fundamentals are still strong.

BitcoinBTCThe price of, which is a cryptocurrency, plummeted after data revealed that the US Gross Domestic Product (GDP), which measures gross domestic products in the US and Canada combined fell by 0.3% during Q1, alarming analysts who predicted a possible 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. 

CNBC noted that while the headline GDP numbers are alarming, the real story is the underlying economics. drop The primary cause of the accident was “a surge in imports ahead of President Donald Trump’s tariffs.” Subtracting imports from GDP suggests that the decline is temporary rather than chronic. 

Bitcoin’s price has rebounded to $94,000 after an initial drop of just 1% as traditional and crypto markets digest the news. Bitcoin’s price is still supported by multiple factors, including the GDP numbers. 

BTC has a consistent pattern of making higher daily lows. It is important to note that the resistance level at $95,500-$96,400 coincides with Fibonacci’s 61.8% retracement. Technical analysis tends to expect this resistance. 

BTC/USD Coinbase. TradingView Source:

The majority of the BTC bullish movement in the price over the last 2 weeks has been driven by spot volume, not the $41.47million spike today. 

Coinbase, Cryptocurrencies, Federal Reserve, Bitcoin Price, Markets, United States, Cryptocurrency Exchange, White House, Donald Trump
BTC/USDT Spot and Futures Cumulative Volume Delta Source: TRDR.io 

Related: Bitcoin macro indicator that predicted 2022 bottom flashes ‘buy signal’

Bitcoin price could rise if demand for bitcoins is strong from multiple angles

Bitcoin has experienced a lot of changes in the last two weeks. 

  • As of April 29, spot Bitcoin ETFs received $3.02billion in new assets, BlackRock IBIT leading the way. 

  • On April 24, statement The US Federal Reserve Board of Governors has announced that US banks are free to offer crypto-based services and products. 

  • Cantor Fitzgerald is launching a cryptocurrency with SoftBank Tether Bitfinex. $3 billion Bitcoin acquisition company Called 21 Capital

  • Then, you can also look at another $1.42 billion Bitcoin purchase Strategy.

  • John D’Agostino is the head of institutional strategy for Coinbase. sovereign entities Bitcoin purchases made during the sale below $75,000. 

  • International companies copy the designs of more and more local businesses “MicroStrategy playbook” By dipping into the Bitcoin Treasury game. 

It is evident that, despite the news headlines triggered by the US shrinking GDP, the sustained buy-side demand and the strengthening fundamentals of the market will likely outweigh today’s short decline in BTC.

The article is not intended to provide investment advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making a final decision.