Bitcoin steady after negative news about the U.S. economy
On the evening of April 30, Bitcoin's price slipped slightly after the U.S. government released new economic data.
On the evening of April 30, Bitcoin's price slipped slightly after the U.S. government released new economic data. According to these figures, the U.S. economy contracted in Q1 2025 by 0.3 percent. Market analysts point mainly to recent import tariffs as the primary cause of the small dip.
The reaction on the crypto market wasn't long in coming: Bitcoin briefly fell below $94,000 and logged a daily loss of 1.2 percent. It has since risen back to $95,045.
President Trump remains firmly behind his trade policy. During a Cabinet meeting he waved off the contraction: "Let's just overlook the first month, we had to get up to speed," Trump said.
Economically, the contraction is partly technical. Many companies anticipated higher import duties by importing a lot of goods. That creates an accounting drag on gross domestic product (GDP). The import data tell the story: they rose in Q1 by a whopping 41.3 percent.
There is not yet talk of a real recession. For that, the economy would need to shrink for two straight quarters. Whether that will happen, and how Bitcoin will move next, remains anyone's guess for now.
