Recession in the US Validated? Fed Alert Sparks Bitcoin Frenzy
Is the US officially in a recession? With the 10-year bond yield surging past 4.40% once again and equity futures plummeting, trading market fears are rising regarding inflation and a Fed poised to resist interest rate cuts.
In the meantime, the digital currency arena is heating up, dominated by BTC. The pressing question is whether we are more likely to hit $100,000 or $75,000 in the coming months. Here are our thoughts.
Is a Recession in the US Officially Confirmed? BTC Faces Major Dump
Since January, Bitcoin’s price has fallen 20% from $110,000 to $86,000. What was once a refuge from uncertainty now closely follows the downturn of conventional equities, casting doubt on its “digital gold” narrative.
Nonetheless, a significant crypto market disruption that could jeopardize BTC is President Donald Trump’s potential bid for the chairmanship currently held by Fed Chair Jerome Powell.
“This would be an enormous, shocking turn of events,” remarked Bilal Hafeez, CEO of Macro Hive. “A change like this could ignite a crisis of confidence, especially considering Powell’s focus on stability.”
Trump: “I can’t wait for Powell’s departure.” pic.twitter.com/LA8VyXd29P
— Nick Timiraos (@NickTimiraos) April 17, 2025
Political discord and economic turbulence have left the Federal Reserve on shaky ground. Concerns are mounting regarding its ability to stave off recession, safeguard the dollar, and prevent markets from descending deeper into chaos.
In essence, there’s a confrontation between the President of the United States and the Fed, ensnaring everyone in the turmoil.
Bitcoin’s Divergence From Gold
While gold remains at its highest ever, Bitcoin’s failure to uphold its status as a safe-haven asset has raised doubts. Although gold has vastly underperformed BTC in the last few years, it has held steady, reaching new peaks and validating its significance during turbulent times.
Conversely, BTC continues to exhibit sideways trading.
“Bitcoin traditionally thrives in times of sustained uncertainty. A rebound may occur once gold leads the way,” observed crypto trader Lark Davis.
Expert Perspectives on What Lies Ahead
Our conclusion is that while the shadow of a potential 2008-like collapse looms, we believe it can be averted, though not without significant volatility.
Bitcoin’s price movements are closely associated with a 108-day Global M2 offset as opposed to the shorter 10—and 11-week forecasts. Credit where it’s merited for identifying this pattern.
Bitcoin’s outlook is now intertwined with shifting economic policy, international financial stability, and trader mood. As uncertainty grips the markets, patience and flexibility will be essential for navigating 2025.
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Key Insights
- Is the US experiencing a confirmed recession? With the 10-year bond yield rising above 4.40% again and equity futures crashing, the outlook does appear grim.
- Even though gold has reached its all-time highs, Bitcoin’s failure to retain its status as a safe-haven asset has led to doubts.
- Currently, the discussion regarding cryptocurrency’s future role in America’s financial landscape is just underway.
The article Recession in the US: Is It Confirmed? Fed Alert Induces BTC Panic first appeared on 99Bitcoins.
