Bitcoin dropped below $93,000 on Wednesday as concerns over a potential U.S. recession intensified following weaker-than-expected economic data and a fresh wave of trade-related uncertainty.
The price of Bitcoin briefly fell to $92,977, extending its 24-hour loss to nearly 2%.
The decline followed the release of the U.S. Core Personal Consumption Expenditures (PCE) Price Index for March, which recorded its slowest annual increase since June 2024.
The Core PCE Index, considered a key inflation measure by the Federal Reserve, rose 2.6% year-over-year in March, down from a revised 3% in February. On a monthly basis, the index remained flat—its weakest showing since April 2020, suggesting further cooling in price pressures.
At the same time, U.S. economic growth contracted at an annualized rate of 0.3% in the first quarter, according to data released by the Bureau of Economic Analysis. The negative print, which surprised analysts who had forecast modest growth, marks the first quarterly decline since early 2022 and reinforces fears that the U.S. economy may be entering a recession.
BREAKING: US Q1 GDP comes in negative for the first time since 2022 at -0.3%
Odds of a recession surge to a new high of 74% pic.twitter.com/y3ZStgt4mt
— Kalshi (@Kalshi) April 30, 2025
Market reaction was swift. Major equity indices opened lower, with the S&P 500 and Nasdaq both falling more than 2%. Bitcoin, which has historically shown a strong correlation with U.S. equities, mirrored the decline. Ethereum and Solana also dropped by about 3%, trading around $1,760 and $143, respectively.
The recession warning comes amid heightened uncertainty over U.S. trade policy. President Donald Trump’s recent tariff measures— including 25% levies on steel and aluminum, 10% on most imports, and 145% on Chinese goods—are seen by some economists as a contributing factor to slowing growth.
Though the administration announced a temporary pause on some tariffs earlier this month, the majority of the measures remain in effect. Analysts suggest that these trade policies, along with weakening consumer sentiment, could place further strain on the U.S. economy.
“Today’s GDP report is the clearest signal yet that trade policy is starting to weigh heavily on economic activity,” said one senior economist. According to Trading Economics, the probability of a U.S. recession has now risen to 70%, the highest level in years.
Bitcoin had previously benefited from the Federal Reserve’s policy shift in 2024, when a series of rate cuts helped boost risk assets. However, the central bank has recently adopted a more cautious stance, citing uncertainty around fiscal policy and global trade conditions.
