The top cryptocurrency rose to $86K on Tuesday morning but fell back below $85K later in the day. The U.S. recession by the end of the year made traders nervous and growing worries about it.
As new trade tensions between the U.S. and countries like Canada, China, and Mexico raise fears of a recession, Traders are starting to bet that the stock market will crash. Stock prices are falling, crypto is dropping fast so investors are shifting their money into safer places as the market becomes more unpredictable.
Current Market Scenario
Currently, Bitcoin is trading at approx $84K. Which is a small gain of 0.68% in one day and a higher 9.04% jump over the past week. On the last day, its price stayed between $83,743.33 and $86,429.35, its steady but slow growth. where, trading activity dropped by 15.87%, with total volume at $29.73 billion.
Fear of Recession
In February, one of the economists surveyed said that there was about a 25% chance of a U.S. recession. But now,according to USA Today, that number has nearly doubled to 47%. Experts said that the economy could slow down or even slide into a recession, because of President Trump’s tariff policies even with a recent 90-day pause on new tariffs.
Also, the U.S. Dollar Index has dropped to its lowest level in three years. where Bitcoin has slowly been rising, because investors lose faith in traditional U.S. assets and find some safer options.Some people think this can finally make crypto a reliable place to store value, not just a risky bet.
Bitcoin Stays Strong, But Traders Stay Careful
Bitcoin’s recent price gains, and market value is now at $1.69 trillion. It’s also gaining more Influence in the crypto market, gaining slightly to 63.85%. That means Bitcoin has been performing better than most other cryptocurrencies lately.
According to one source of data, the future market has stayed fairly calm.Total losses from forced sell-offs were about $659,180. Most of that around $482,570 came from traders who were betting that Bitcoin’s price would go down. Those who were expecting the price to go up lost much less, about $176,610.
Open interest in Bitcoin futures dropped by 3.22% to $54.91 billion. This shows that even though Bitcoin had a strong week, traders are still being a bit careful.
Q: Is Bitcoin safe during a US recession?
A: While volatile, Bitcoin is increasingly seen as a hedge by some investors during economic uncertainty.
Q: How does a US recession affect crypto prices?
A: Typically, crypto markets react with volatility. Some investors shift funds to Bitcoin, hoping it’s a safer asset.
