The Atlanta Fed predicts that the economy will shrink in the first quarter, which could disrupt the stock market and BTC.

Golden Finance reported that the GDPNow forecast of the Atlanta Fed shows that the economy will shrink by -1.5% in the first quarter of 2025, which may disrupt the stock market and Bitcoin. The market is now waiting for the Fed’s response to the economic headwinds.

• Sharp declines in net exports and weakened consumer spending led to a significant revision of the GDPNow model to -1.5%.
• Stocks face profit risks; BTC and crypto assets may fluctuate due to the expected Fed rate cut.
• The Fed has delayed the clarity of rate cuts to balance inflation concerns (3% in January) and pressure for growth stimulus.