Bitcoin holds above $94K as US GDP contracts before tariffs

The United States Bureau of Economic Analysis (BEA) released its first quarter 2025 GDP and PCE reports on April 30, sparking fresh concern over the nation’s economic direction.

While inflation showed signs of easing, GDP data revealed a contraction, raising fears of a potential recession.

“Personal income increased $116.8 billion (0.5% at a monthly rate) in March,” according to the BEA, with growth driven by compensation and proprietors’ income.

Core PCE, the Federal Reserve’s preferred inflation gauge, rose 2.6% year-over-year in March, the lowest since June 2024.

The month-over-month figure was also the lowest since April 2020, suggesting inflation pressures are cooling.

Despite positive inflation data, GDP shrank in Q1 — before the full impact of Trump’s new tariffs — signaling potential economic weakness.

Economists generally define a recession as two consecutive quarters of negative GDP growth, and this report confirms the first.

CNN noted that inflation may have appeared more stable due to consumer behavior ahead of expected price hikes.

Shoppers may have purchased goods early to avoid future cost increases, which could have distorted traditional spending patterns.

Meanwhile, Bitcoin (CRYPTO:BTC) continued to show resilience amid the uncertainty.

It remained above $94,000, resisting downward pressure from recessionary fears.

In Argentina, BTC hit a new all-time high, trading above 110 million ARS per coin.

This surge coincided with the Argentine peso’s depreciation, which hovered near 1,165 per US dollar in official markets.

Analysts are closely watching whether Bitcoin will continue to act as a safe haven during periods of financial instability.

While the long-term role of crypto in economic downturns remains unclear, current trends suggest it may offer some form of hedge against national currency devaluation and trade-related disruptions.

At the time of reporting, the Bitcoin price was $94,253.80.