Crypto Market Takes a Hit Amid U.S. recession Fears
On Thursday,Bitcoin and most cryptocurrencies experienced a important downturn. The total market cap fell by over 5.7%,landing at $2.6 trillion. Pi Network (PI) suffered the most, plummeting to a new low of $0.56, an 80% drop from its February peak.
pepe (PEPE) and Ethena (ENA) also took hits, with declines of 17% and 18%, respectively. Other altcoins, including Hyperliquid, Berachain, Bonk, Jito, and Official Trum, saw drops exceeding 15%.
The decline coincided with rising U.S. recession odds. Polymarket now puts the probability at over 70%. MetLife, Goldman Sachs, and PIMCO have also raised their forecasts. This surge in recession odds followed Donald Trump’s announcement of tariffs on countries exporting goods to the U.S.
Analysts warn these tariffs coudl be a black swan event, possibly reshaping the global economy. Canada has already retaliated with a 25% tariff on U.S. vehicles,and Trade Secretary Howard Lutnick hinted at further tariff increases.
The crypto crash mirrored declines in U.S. equities. The Dow Jones, Nasdaq 100, and S&P 500 fell by 1,200, 200, and 815 points, respectively. The fear and greed index dropped to 11, and the crypto fear index to 24.
However, history shows that bull markets often start when fear is at its peak. The last time the CNN Fear and Greed Index hit this level was in March 2020, just before a historic rally began. If the Federal Reserve intervenes with rate cuts and liquidity support, bitcoin and altcoins like Pi Network, Pepe, and Ethena could recover.
