Analysts: U.S. GDP unexpectedly shrinks in the first quarter, and if the Federal Reserve turns pigeon, it will be beneficial to Bitcoin

PANews reported on May 2 that according to The Block, the US GDP fell by 0.3% annually in the first quarter of 2025, showing negative growth for the first time since 2022. Valentin Fournier, chief research analyst at BRN, pointed out that slowing economic growth and cooling inflation may prompt the Federal Reserve to adopt a more dovish monetary policy stance to support risky assets such as Bitcoin. The current bullish price trend is the main driver of demand. A new round of liquidity injection may lead to the benefits of alternative risk assets such as cryptocurrencies than stocks, because stocks may be in trouble in the case of economic slowdown.

Bitcoin has risen more than 13% since Liberation Day to a two-month high, while the S&P 500 has gained less than 1% in the past 30 days, with Bitcoin outperforming the stock market.