On March 11, 2025, the cryptocurrency market collapse; Bitcoin fell to $76,000, its lowest amount in four months. Marking its worst trading day since 2022, the S&P 500 deleted $1.4 trillion in market capital value. Fears of a recession started off the broad collapse across risk assets; analysts estimate a 40% likelihood of the US economy falling into a recession this year.
Market Crash Cryptos and Stocks Tumble as Recession Odds Rise
Equity and cryptocurrency investors are avoiding riskier assets due to economic uncertainties. Yesterday, the S&P 500 market cap plummeted $1.4 trillion, its lowest day in two years. Today, this index is almost at a six-month low. After Bitcoin’s price dropped to $76,000 and Ethereum’s price dropped under $1,800 for the first time since November 2023, cryptocurrencies also witnessed a similar fall, resulting in $54,000 in overall liquidations. Furthermore, most top altcoins are trading at multi-month lows.
After forecasting the market, Kalshi revealed that the likelihood of a US recession increased to 40%, and the fear of a forthcoming recession set off this downturn. These concerns prompt traders to de-risk from risk assets like crypto and stocks and seek assets like gold, which has achieved an all-time high.
Trump Drives US Recession Rumours
After President Donald Trump failed to exclude the possibility that the US economy would slide into a recession in 2025, the markets also grew nervous. In an interview with Fox Business, Trump said that his economic policies—including tariffs—would create temporary upheaval. “There is a transition period since what we are doing is rather large,” he said. Though we will be disrupted, we are not bothered about it.
Despite continuous economic uncertainties, Federal Reserve Chair Jerome Powell observed that the US economy was still in good shape this week. Consequently, the Fed was not rushing to lower rates to boost economic growth and prevent a recession.
“We can keep policy restraint for longer if the economy stays strong but inflation does not continue to move sustainably towards 2 percent,” Powell said.
Next for cryptocurrencies?
Cryptocurrency market collapse, Opinions in the market are divided regarding whether cryptocurrencies will bounce back following the last crash. Analyst Ali Charts observed that the next significant support level is $66,000 following Bitcoin’s price sliding below its 200-day moving average. BTC’s price can drop progressively till it reaches this level without any optimistic stimulus and with economic worries continuing under influence.
Other cryptocurrencies will also drop if Bitcoin prices fall. But ARK Invest CEO Cathie Wood pointed out that the crypto market discounting the last stages of a rolling recession was driving the current decline. Following this period, the crypto market will see a deflationary surge in the second half 2025. Bitcoin might find maintaining the $80K support level challenging since market mood is unknown. After reaching 2023 lows, Ethereum might also quicken its fall. For most cryptocurrencies, this reveals a pessimistic price forecast.
