Bitcoin Steady as US Confirms Economy Shrank in Q1

U.S. Economy Contracts in Q1 2025, Crypto Market Remains Resilient

In a surprising turn of events, the U.S. economy has experienced its first contraction since 2022, according to revised official statistics released on Thursday. The economy shrank by an annualized 0.2% during the first quarter of 2025, signaling a potential economic slowdown.

The decline in U.S. gross domestic product (GDP) reflects increased imports and reduced government spending. This follows the aftermath of President Trump's global trade war, which imposed tariffs of up to 104% on more than 180 countries.

Despite the economic downturn, the cryptocurrency market has shown remarkable resilience. Bitcoin remains stable, while Ethereum gained 1.1% and XRP dipped just 0.4% over the past 24 hours. Solana experienced the most significant movement among top 10 cryptocurrencies, falling 1.3%.

Notably, meme coins led today's price movements. Ethereum-based SPX6900 (SPX) surged 10.9%, while Solana's Fartcoin (FARTCOIN) dropped 7% - relatively modest swings for these typically volatile assets.

The economic contraction stems from lingering trade war effects, including slowed consumer spending and rising imports. The crypto market's stability suggests investors remain focused on digital assets' long-term potential rather than short-term economic conditions.

As U.S. policymakers address economic challenges, the cryptocurrency sector continues to demonstrate its ability to weather traditional financial market fluctuations.