The price of Bitcoin fell below $95,000 on Wednesday after the U.S. Bureau of Economic Analysis said that the economy contracted at an annualized rate of 0.3% in the first quarter, underscoring recession concerns tied to U.S. President Donald Trump’s tariffs.
Economists expected the U.S. economy to grow at an annualized rate of 0.3% in the three months through March; however, Wednesday’s reading represented the first quarterly decline in economic growth since the first quarter of 2022, according to Trading Economics.
Bitcoin was recently changing hands around $94,300, immediately falling after Wednesday’s snapshot, according to crypto data provider CoinGecko. Altcoins wavered, with Ethereum and Solana each falling 3% to $1,760 and $143 over the past day, respectively.
Bitcoin boomed as the Federal Reserve delivered a series of rate cuts last year, lowering its benchmark rate to a target range of 4.25% to 4.50%. In December, however, the central bank adopted a relatively cautious stance, pointing to potential shifts in trade and immigration policy under Trump that could complicate the Fed’s years-long fight to restore price stability.
Since Trump focused his efforts on reshaping global trade, so-called soft data like the University of Michigan’s consumer survey have pointed to plunging sentiment among U.S. consumers. Wednesday’s economic growth data, notably, was hard evidence that Trump’s tariffs are having an adverse impact on the economy’s ability to expand.
Although the president unveiled a 90-pause on “reciprocal” tariffs earlier this month, other levies have already gone into effect. Those include 25% tariffs on all steel and aluminum imports, a 10% baseline tariff on imports from nearly every nation, sector-specific tariffs, and 145% tariffs on Chinese goods that have now been in place for several weeks.
U.S. Treasury Secretary Scott Bessent suggested on Tuesday that American retailers would not face pronounced disruptions from tariffs, despite warnings that shipping volume in the port of Los Angeles is facing a precipitous drop, per Reuters.
“We have some great retailers,” Bessent told Fox News. “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.
Edited by James Rubin