US Recession Fears Increase as Bitcoin Drops Below $80,000
US Recession Fears Impact Crypto Market
Concerns about a U.S. recession have escalated, resulting in significant sell-offs in the crypto market, particularly affecting Bitcoin and altcoins.
- Former PIMCO CEO Mohamed El-Erian has increased recession probability estimates to 25-30% from 10% earlier this year.
- Polymarket forecasts a 38% chance of an official recession declaration by year-end.
- The crypto market has lost over $700 billion in value recently, with Bitcoin dropping below $80,000.
- Analyst Alex Kruger noted potential recovery could follow a softening of tariffs by Trump.
Potential Further Decline for Bitcoin
Bitcoin's price drop below $80,000 raises concerns about a possible decline to $70,000. Analyst Joe Consorti highlighted convergence with global M2 money supply, indicating only an $8K gap remains.
- Historically, Bitcoin experienced average corrections of 35% before major rallies; a 25% correction has occurred so far this cycle.
- Former BitMEX CEO Arthur Hayes advised patience for investors considering buying the dips.
Altcoin Performance Under Scrutiny
2025 has been challenging for altcoin investors. Ethereum fell below $2,000, potentially heading towards $1,500. Other altcoins have seen corrections of 35-40% year-to-date.
- Michael van de Poppe remains optimistic, suggesting similar past corrections led to future gains.