The Atlanta Fed’s GDPNow model reflects a slight economic improvement, with the estimate for Q1 2025 GDP growth now at -2.2%. This change comes after the previous -2.4% estimate. Contributing factors include positive trends in consumer spending. The updated outlook led to market volatility, with stock indices experiencing significant losses and cryptocurrency prices plummeting. The Atlanta Fed’s model reflects a data-driven forecast based on economic indicators, not necessarily an official prediction from the Federal Reserve. Despite the decline, it is worth noting that past recessions have seen investors flock towards stablecoins and traditional assets like gold. These trends, as reported by CoinMarketCap, demonstrate market response to economic shifts impacting both equity and cryptocurrency markets.