The United States has witnessed a 0.3% dip in GDP during this year’s 1st quarter, a significant reaction expressed by crypto markets. As per the latest reports, Bitcoin ($BTC) and the other crypto assets have plunged as the U.S. President Donald Trump blamed the Biden administration for the GDP decline in Q1 2025. This development highlights the growing uncertainty in the U.S. markets.
Crypto Sector Sees Brief Correction as Trump Blames Biden for Shrunk GDP in Q1 2025
Trump asserted that the shrunk GDP is a product of the economic legacy of the former U.S. President Joe Biden. In his latest speech on this matter, Trump mentioned that the tariffs are not responsible for this issue. Rather, he added that the bad policies implemented by Biden are the actual reason for this GDP decline. While responding to this, the crypto sector has gone through a notable plunge in investor sentiment. However, several traders consider this to be a short-term correction.
Specifically, Bitcoin ($BTC) recorded an abrupt slump in price. Hence, the price declined to $92,910 as an intra-day low level. Following a 1% drop in Bitcoin’s price, it rebounded to the $94K level. In addition to this, Bitcoin is currently facing a noteworthy resistance at $95K. Though the GDP figures are apparently alarming, the dip is primarily seen as a result of a spike in imports before the tariffs implemented by Trump.
Market Onlookers Consider Current Dip as Provisional Downturn
Overall, the GDP dip has massively influenced U.S. financial markets. Nevertheless, as some market onlookers perceive, this decline is temporary. Hence, irrespective of the decreasing U.S. GDP that has triggered a news headline-led correction, the sustained purchase demand and overall fortifying market structure are likely to win over this downside. In the meantime, the market onlookers are closely watching for the next notable market indicators amid this turmoil.
