tl;dr
The U.S. economy contracted by an annualized 0.2% in Q1 2025, marking its first shrinkage since 2022, due to increased imports and decreased government spending. This follows the economic impact of President Trump's global trade war, which imposed high tariffs on over 180 countries but has recently ...
The U.S. economy contracted by an annualized 0.2% in Q1 2025, marking its first shrinkage since 2022. This decline is primarily attributed to increased imports and decreased government spending, consequences of the global trade war tariffs imposed under President Trump's administration.
Despite the economic slowdown, the cryptocurrency market remained largely stable. Bitcoin traded flat, Ethereum gained 1.1%, XRP dipped 0.4%, and Solana fell 1.3%. Meme coins experienced the most notable shifts, with SPX6900 rising 10.9% and Fartcoin falling 7%, reflecting modest volatility in an otherwise steady market.
The easing of trade tensions, highlighted by new agreements with China and deadline extensions for negotiations with the European Union, had previously propelled market gains and pushed cryptocurrencies to new highs. However, the latest GDP report revealed a slowdown in consumer spending compared to the robust 2.4% growth in Q4 2024, signaling ongoing economic challenges.
Overall, the revised figures underscore the economic impact of sustained trade disruptions and policy shifts. While traditional markets faced pressure, crypto assets largely shrugged off the contraction, with only minor price fluctuations among leading tokens. This resilience highlights the growing maturity and differentiation of cryptocurrency markets amid global economic uncertainties.