Crypto Markets React to the Report that U.S. Economic Activity Decreased in Q1 2025

The U.S. Q1 GDP came in at a negative 0.3%, contrasting with the projections of a 0.2% rise in economic activity.

This outcome puts the current administration in a difficult position, and it may also influence the Federal Reserve's decision on Trump’s calls for rate cuts at the upcoming FOMC meeting on May 6-7.

Polymarket Recession Bet Hits ATH

The contract on Polymarket predicting a U.S. recession in 2025 reached its highest point yet, with a 71% chance.

The bet shot up by 7% in the last hour alone, showcasing the immediate market response to the disappointing GDP reading. Other financial instruments are also feeling the impact, including stock and crypto.

Bitcoin Takes a Hit

The market-leading cryptocurrency stalled its ascending momentum only minutes after the GDP Q1 report. Bitcoin was trading at $95,208 before the report, only to fall by 0.68% five minutes after the news broke.

Currently, $BTC trades at $94,480 and still experience a surplus of trading volume as investors react to the unexpected -0.3% GDP print.

So, are we heading towards a full on recession, or is the Trump administration bet on aggressive foreign trade pay off by the end of the year? Bookmark us and we’ll keep you updated, deal?