Quick Summary
- U.S. GDP shrank by 0.3% in Q1 2025, sparking market-wide reactions.
- Donald Trump blamed Joe Biden’s economic policies for the downturn.
- Bitcoin ($BTC) dropped sharply to $92,910 before recovering to $94K.
- Market analysts view the crypto dip as a temporary correction.
- Resistance for Bitcoin currently sits at the $95K mark.
Crypto Markets React to U.S. GDP Shrink
The U.S. economy reported a 0.3% decline in GDP during the first quarter of 2025, sending ripples across the financial landscape—especially in the cryptocurrency sector. This economic news triggered a volatile response, as digital assets like Bitcoin experienced an abrupt dip in value. The market downturn followed a bold statement by former President Donald Trump, who directly criticized the Biden administration’s handling of the economy.
Trump Blames Biden Policies for Economic Slowdown
In a recent speech, Donald Trump denied that tariffs played a role in the GDP dip. Instead, he pointed the finger at Biden’s economic decisions, stating,
“The bad policies implemented by Biden are the actual reason for this GDP decline.”
Trump’s remarks added fuel to the already jittery investor sentiment, causing a swift sell-off in the crypto market. Despite the political tension, many traders see this as a knee-jerk reaction rather than a long-term trend.
Bitcoin Slips, Then Recovers Amid Market Jitters
Bitcoin ($BTC), often seen as a barometer for crypto sentiment, plummeted to an intra-day low of $92,910 following the announcement. The price then bounced back slightly to hover around the $94K level. Analysts now point to $95K as a key resistance point for the asset, suggesting that sustained momentum will be needed to break past it.
Is This Just a Temporary Setback?
Despite the alarming GDP numbers, financial experts believe the current downturn is temporary. Many market watchers attribute the GDP decline not solely to policy missteps but also to a pre-tariff spike in imports that skewed quarterly figures.
They argue that the market structure remains strong and resilient. As one report suggests,
“The sustained purchase demand and overall fortifying market structure are likely to win over this downside.”
Investors are now closely watching upcoming economic indicators to better assess the market’s direction in the weeks ahead.