Bitcoin Plummets Below $95,000 Amidst U.S. Economic Contraction - What You Need to Know

In brief

• Bitcoin dropped below $95,000 after quarterly gross domestic product fell for the first time since 2022.
• Ethereum and Solana both fell roughly 3%.
• U.S. President Donald Trump's trade tariffs have unsettled markets.

The price of Bitcoin fell below $95,000 on Wednesday after the U.S. Bureau of Economic Analysis reported that the economy contracted at an annualized rate of 0.3% in the first quarter, raising recession concerns tied to President Donald Trump’s tariffs.

Economists had expected the U.S. economy to grow at an annualized rate of 0.3% in the three months through March; however, Wednesday’s reading marked the first quarterly decline in economic growth since the first quarter of 2022, according to Trading Economics.

Bitcoin was recently trading around $94,300, immediately falling after the economic report, according to CoinGecko. Altcoins like Ethereum and Solana also took a hit, each dropping 3% to $1,760 and $143, respectively.

Major U.S. equity indexes opened in negative territory, with the S&P 500 and tech-heavy Nasdaq both sinking over 2%. Historically, Bitcoin has shown a strong correlation with stock market performance.

Bitcoin saw significant gains last year as the Federal Reserve implemented a series of rate cuts, lowering its benchmark rate to a target range of 4.25% to 4.50%. However, in December, the Fed adopted a more cautious stance, indicating potential shifts in trade and immigration policy under Trump that could complicate its efforts to restore price stability.

Since Trump has focused on reshaping global trade, surveys such as the University of Michigan’s consumer survey have indicated a decline in sentiment among U.S. consumers. The latest economic growth data serves as hard evidence that Trump's tariffs are adversely affecting the economy's ability to expand.

Although the president recently announced a 90-day pause on “reciprocal” tariffs, other levies are already in effect, including 25% tariffs on steel and aluminum imports, a 10% baseline tariff on imports from nearly every nation, sector-specific tariffs, and 145% tariffs on Chinese goods.

U.S. Treasury Secretary Scott Bessent suggested that American retailers would not face significant disruptions from tariffs. However, warnings indicate that shipping volume at the port of Los Angeles is facing a drastic drop, as reported by Reuters.

Bessent stated, “We have some great retailers. I assume they pre-ordered. I think we’ll see some elasticities [...], and then we will see how quickly the Chinese want to de-escalate.”

UPDATE (April 30, 2025, 9:36 a.m. ET): Updates prices. UPDATE (April 30, 2025, 9:46 a.m. ET): Updates with equity index data. Edited by James Rubin