Worries About Recession Impact Markets

Concerns over a recession led to a market downturn, affecting both stocks and cryptocurrencies. On Black Monday, U.S. stock indices experienced significant losses:

• Dow: -2%
• S&P 500: -2.7%
• Nasdaq: -4%

Major corporations like Tesla, Apple, and Nvidia were also affected; Tesla notably fell by 15.4%. During this time, Bitcoin dipped below $80,000, marking its second downtrend in three weeks and unsettling investors.

Hayes’ Bitcoin Prediction Gains Traction

Arthur Hayes, co-founder of BitMEX, has long predicted potential corrections in the Bitcoin market. He previously suggested a drop to $75,000, a forecast which now appears increasingly likely, given Bitcoin’s recent low of $81,380.

Hayes reiterated his belief that Bitcoin could experience further declines if it reaches the $75,000 mark, citing increased bearish sentiments as a warning signal.

Related: Bitcoin Price Crash? Hayes Predicts March Meltdown

Economic Concerns and Political Climate Intensify Market Decline

The market slide is exacerbated by worries surrounding the U.S. economy. Treasury Secretary Scott Bessent warned of a potential “detox period” as the new administration plans to reduce government spending. Furthermore, President Trump indicated that the economy is in a “transition period,” which has added to investor uncertainty.

Goldman Sachs recently downgraded its U.S. growth forecast, attributing the risks to new tariffs. According to the New York Federal Reserve, the inflation expectations stand at 3.13%, raising concerns about the economic outlook.

Bitcoin Struggles to Diverge from Traditional Markets

Bitcoin’s ongoing decline reflects its difficulty in separating from conventional asset markets. According to Mintology CEO Zach Burks, Bitcoin, once seen as a safe haven, is now perceived as a high-risk asset.

Nevertheless, certain technical indicators suggest Bitcoin may be approaching a short-term rebound. The RSI is currently at 37.60, nearing the oversold zone of 30, which often indicates a possible price reversal.

Source: TradingView

Related: US Stock Market on Edge of a Bull Run, Says Crypto Firm

Additionally, the MACD remains negative, indicating continued bearish momentum. However, if buying pressure increases, these indicators might suggest a trend change, potentially leading to a recovery.

Disclaimer: This article is for informational and educational purposes. It does not constitute financial advice. Coin Edition is not liable for any losses incurred due to the content discussed. Readers are advised to exercise caution.