Bitcoin selling at $95K is ‘profit-taking pressure test’ but BTC whales are still buying
The post Bitcoin selling at $95K is ‘profit-taking pressure test’ but BTC whales are still buying appeared on BitcoinEthereumNews.com.
Key Takeaways: US GDP shrank -0.3% in Q1, far below +0.3% forecasts, sparking recession fears. Bitcoin faces selling pressure with its spot volume delta dropping $300 million in 3 days. Whales are accumulating BTC, but smaller holders are selling, hinting at profit-taking. Bitcoin’s (BTC) price dropped under $93,000 on April 30, after the US Gross Domestic Product (GDP) data revealed a -0.3% contraction in Q1. While the GDP missed expectations of +0.3%, the GDP Price Index soared to 3.7%—the highest since August 2023. Polymarket odds of a recession in 2025 hit 67%, with consumer confidence at its lowest since May 2020. Quarterly US GDP growth data. Source: X.com Meanwhile, in March 2025, PCE (Personal Consumption Expenditures) inflation fell to 2.3% (above the expected 2.2%), and Core PCE dropped to 2.6% (in line with expectations). Still, February’s Core PCE was revised from 2.8% to 3.0%, signaling mixed inflation trends. Short-term bearish, long-term bullish for Bitcoin? During the 2020 COVID-19-induced market crash, BTC initially followed traditional markets before rallying over 300% by year-end as the global M2 money supply increased, reflecting its appeal during periods of monetary expansion. However, stagflation, highlighted by the -0.3% GDP contraction in Q1 2025 and a 3.7% GDP Price Index, pose short-term risks. Cointelegraph noted that high inflation often deters retail crypto investment, as seen in 2022 when BTC fell 60% amid Federal Reserve interest rate hikes. The March 2025 PCE inflation data suggests cooling pressures that could ease Fed rate hike fears and support Bitcoin. On the other hand, February’s upward revisions (headline PCE from 2.5% to 2.7%, Core PCE to 3.0%) signal persistent inflation, keeping the Fed’s next moves uncertain. While fear of stagflation may pressure BTC in the short term, its long-term hedge potential remains valid. Related: Bitcoin macro indicator that predicted 2022 bottom…
Filed under: News - @ May 1, 2025 6:26 am