Key takeaways: Bitcoin bulls are attacking the $95,000 level again after today’s brief US GDP-induced sell-off. Traders are semi-agnostic to negative US economic data as they expect the Federal Reserve to resume easing and rate cuts at some point in the future. Bitcoin ( BTC ) price knocks on the door of $95,000 after starting the NY trading session with a slight sell-off to $92,910 following alarm-raising US GDP data, which showed the economy shrank in Q1 2025. The move mirrors a similar recovery seen in the DOW and S&P 500, which bounced 0.35% and 0.15% respectively at the closing bell. The quick recovery in Bitcoin price highlights the strong bid by a variety of market participants, and it lines up with the view that the April 30 GDP data could be a one-off event resulting from businesses ramping up their imports ahead of President Donald Trump’s tariffs on about 90 countries. While a shrinking economy and record-low consumer confidence are valid concerns for TradFi investors, the threat of a US recession also plays into crypto traders investment thesis which predicts that a variety of negative economic events will eventually force the Federal Reserve to cut rates and issue more dollars — a maneuver which historically has benefitted Bitcoin price. Current odds of a Fed interest rate cut have increased this week, from 59.8% on April 29 to 63.8% on April 30. Fed target rate probabilities for June 18, 2025 Fed meeting. Source: CME FedWatch According to popular X trader Skew, the bounce in Bitcoin and US stocks was partially driven by “pretty solid revenue beats from big US companies so far,” which could also “bolster some confidence in risk.” BTC/USD chart. Source: Skew / X The trader also said that Bitcoin’s, “Spot flow [was] primarily driven by passive buyers today, and price lifted with taker bid. Funding rate normalizing now after some shorts closing out.” Related: Bitcoin price consolidation likely as US Core PCE, manufacturing, and jobs reports print this week Currently, $95,500 is the key level traders are watching, and many analysts believe that a sustained push through the resistance zone opens the door for a swift move back to $100,000. It’s possible that the May 2 jobs report, which will show how many jobs were added to the US economy in April, could have a slight impact on the stock market and, in turn, cryptocurrencies. This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
