Bitcoin dropped below $95,000 following a report from the U.S. Bureau of Economic Analysis indicating that the economy contracted at an annualized rate of 0.3% in the first quarter of 2025. This marked the first decline in economic growth since early 2022, raising concerns about potential recession linked to President Donald Trump's trade tariffs. Economic forecasts had anticipated growth of 0.3%, but the unexpected contraction has unsettled the markets and led to fears of rising inflation. As a result, cryptocurrencies like Bitcoin saw immediate price drops, and altcoins like Ethereum and Solana also experienced declines. The tariffs imposed by Trump, including significant levies on imports, are cited as major factors affecting economic expansion and consumer sentiment. The situation has prompted discussions about potential risks to U.S. retailers and the ongoing struggle to balance trade and inflation concerns. Ongoing scrutiny of the economic climate emphasizes the need for careful monitoring of both cryptocurrency markets and broader economic indicators as trade policies continue to evolve.

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