Bitcoin and the broader crypto market are under pressure as recession fears rise following comments from US President Donald Trump. In an interview, Trump acknowledged the possibility of a recession and suggested a willingness to weather it to implement necessary economic reforms. This perspective has heightened near-term anxieties among Wall Street investors and cryptocurrency traders, leading to a sharp sell-off in risk assets, including Bitcoin. The Federal Reserve's warning about the possibility of a recession has further intensified market jitters. Bitcoin prices have dropped below $80,000, down nearly 3% since Tuesday's session opened. The downturn in Bitcoin aligns with a broader shift in investment strategies, with institutional investors reducing their exposure to high-risk assets. With uncertainty over Federal Reserve policy and inflationary concerns, investor sentiment has turned risk-off. The immediate outlook for Bitcoin and the crypto market remains uncertain, and traders and investors should be prepared for continued volatility.
Bitcoin, Solana and Crypto Markets Likely in ‘Classic Bear Trap’ Before Euphoric Move: InvestAnswers