Bitcoin (BTC) price drops to $92,900 as US GDP shrinks, raising recession alarms

Bitcoin (BTC) price took an abrupt tumble as data showed the US gross domestic product (GDP) retracting by 0.3% in Q1

US gross domestic product (GDP) fell by 0.3% in Q1, while economists had anticipated a 0.1% rise and the previous quarter showed a 2.7% increase, according to government data released on Thursday. The Dow Jones Industrial Average dropped by 1%, while the S&P 500 fell by 1.3%.

The GDP figures are being closely watched by analysts amid warnings of a possible recession. However, one report stated that the drop in GDP was mainly due to a surge in imports ahead of President Donald Trump's tariffs, which are set to be rolled out later this year.

"The decline in GDP was driven largely by a surge in imports of goods and services, which is being driven by consumer demand for foreign products and a weaker dollar," the report noted.

Imports are subtracted from GDP, so the pullback is being viewed as more transitory than concerning.

Bitcoin price dropped to an intra-day low of $92,910 as GDP figures were released.

Bitcoin has multiple positive factors that could provide support for the crypto in the current price range. The digital asset is still holding a pattern of daily higher lows, with strong resistance at $95,000.

Overhead resistance at $95,500 to $96,400 is also aligned with the 61.8% Fibonacci retracement, which technical analysis suggests could be an expected level of resistance.

Bitcoin price rebounded to the $94,000 range after an initial 1% drop saw the crypto touch $92,910.

The bulk of BTC's bullish price action over the past two weeks has been driven by spot volumes, which is another positive factor.

However, today's $41.47 million spike in Bitcoin long liquidations is a factor that could exert downward pressure on the cryptocurrency.