US recession 40% likely in 2025, what it means for crypto — Analyst
Market analyst Nic Puckrin of Coin Bureau predicts a 40% chance of a US recession in 2025 due to ongoing macroeconomic uncertainties and potential trade war ramifications. He highlights that while a recession isn't probable, risk-on assets like cryptocurrencies may still be adversely affected in such an environment. Puckrin references comments from former President Trump suggesting that economic policies could lead to recessionary effects, such as federal job cuts and budget balancing. He adds that the declining US Dollar Index (DXY) reflects shifts by investors towards more stable European markets amidst these uncertainties. Recent developments, including a significant drop in Bitcoin prices correlated with trade war fears, underscore the volatility in the crypto market. Research analyst Nicolai Sondergaard expects continued declines in crypto until at least April 2025 unless trade tensions ease. An improvement in Trump’s posture towards tariffs could signal a potential market recovery, as indicated by expert Markus Thielen. Overall, the changing economic landscape presents challenges for the crypto sector in the near future.
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