Bitcoin Rebounds 2.3% After US GDP Data Dip

Bitcoin's price has demonstrated remarkable resilience, rebounding from the bearish US GDP data that initially caused a sell-off. The cryptocurrency dipped to around $92,910 following the release of the economic data, which showed a contraction in the economy during the first quarter of 2025. However, this dip was short-lived as dip buyers quickly capitalized on the lower prices, pushing Bitcoin back toward the $95,000 mark.

The recovery in Bitcoin's price mirrors a similar bounce seen in traditional financial markets, with the DOW and S&P 500 indices also showing gains. This parallel movement suggests that the market's reaction to the US GDP data was not isolated to cryptocurrencies but reflected a broader sentiment shift. The quick recovery in Bitcoin's price highlights the strong bid by a variety of market participants, who view the April 30 GDP data as 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 traditional financial investors, crypto traders see these negative economic events as potential catalysts for Federal Reserve rate cuts and increased dollar issuance. Historically, such maneuvers have benefited Bitcoin's price, as they can lead to increased liquidity and investment in riskier assets. The current odds of a Fed interest rate cut have increased this week, reflecting this expectation.

The rebound in Bitcoin's price was also driven by solid revenue beats from big US companies, which bolstered confidence in risk assets. According to a popular X trader, the bounce in Bitcoin and US stocks was partially driven by these positive earnings reports. The trader also noted that Bitcoin’s spot flow was primarily driven by passive buyers, with the price lifting due to taker bid and the funding rate normalizing after some shorts closed out.

Looking ahead, traders are closely watching the $95,500 level, with many analysts believing that a sustained push through this resistance zone could open the door for a swift move back to $100,000. The upcoming May 2 jobs report, which will show how many jobs were added to the US economy in April, could also have an impact on the stock market and, in turn, cryptocurrencies. However, the market's reaction to the US GDP data and the Federal Reserve's policy rate expectations highlights the complex interplay between economic indicators and cryptocurrency prices.

In summary, Bitcoin's price has rebounded from bearish US GDP data, with dip buyers pushing the price back toward the $95,000 mark. This recovery highlights the cryptocurrency's resilience and the significant demand for Bitcoin, even in the face of economic uncertainty. The market's reaction to economic indicators and the Federal Reserve's policy rate expectations underscores the complex dynamics at play in the cryptocurrency market.