Has a US Recession Been Established? Fed Alerts Cause Bitcoin Anxiety

The market is growing anxious over the potential for a recession in the U.S. as the yields on 10-year bonds soar beyond 4.40% and stock futures plummet. Investors are concerned regarding inflation levels and a Federal Reserve unwilling to lower interest rates.

Bitcoin, integral to the cryptocurrency sector, faces a pivotal question: Are we moving towards $100,000 or downward to $75,000?

Has a US Recession Been Established? Bitcoin Faces Significant Price Correction

Bitcoin has seen a significant decline, dropping 20% from a peak of $110,000 to $86,000 this year, now reflecting the downturn of traditional equities. This raises concerns about Bitcoin’s reputation as “digital gold.”

A major point of concern is President Trump’s speculation about replacing Jerome Powell as Fed Chair. Bilal Hafeez, CEO of Macro Hive, voiced, “It would be a huge, huge shock. Such a move could spark a confidence crisis, especially given Powell’s stability-focused policies.”

Trump stated: “Powell’s termination cannot come fast enough.” — Nick Timiraos (@NickTimiraos) April 17, 2025

Political turmoil and economic uncertainty are leading many to question the Fed’s ability to avert a recession amid ongoing pressures to stabilize the dollar.

Bitcoin’s Divergence From Gold

While gold remains at record levels, Bitcoin’s lack of safe-haven reliability is under scrutiny. Traditionally, Bitcoin flourished in turbulent times; however, it currently presents a less appealing option, trading sideways in recent months.

Crypto investor Lark Davis noted, “Bitcoin historically benefits from prolonged uncertainty. We could see it rebound once gold leads the charge.”

Expert Views on the Way Forward

Despite the specter of another financial crisis like in 2008, experts believe it may be avoided but expect significant volatility. Bitcoin’s price actions often align with a 108-day Global M2 offset instead of shorter intervals.

Bitcoin’s destiny now intertwines with evolving economic policies and market sentiments, where adaptability will be key.

Key Takeaways

1. Has the recession in the US been confirmed? With 10-year bond yields spiking above 4.40%, the outlook is grim.
2. Gold has maintained its peak while Bitcoin struggles for its safe-haven status.
3. The conversation about the future of cryptocurrency in the U.S. financial landscape is just beginning.