Bitcoin and Stocks Plummet as Recession Fears Grip Wall Street

Hold onto your hats, folks! Bitcoin and stocks took a nosedive as Wall Street woke up to the harsh reality of looming recession fears. The market narrative is shifting, and it's not looking pretty.

The trading day was a wild ride, with both stocks and crypto markets taking a hit and wiping out most of the previous day's epic rally. On April 10th, the S&P 500 was trading at 5,233.61, shedding a whopping 223.36 points, or 4.31%. Meanwhile, the Dow Jones was at 39,296.45, plummeting 1,312.00 points, or 3.23% from the day before. The Nasdaq wasn't spared either, dropping 4.66%, or 790.22 points, to close at 16,333.49.

These declines came hot on the heels of the third-biggest daily rally in the S&P 500's history and the best day since the wild times of October 2008. Back then, the market was riding high on Donald Trump's 90-day pause of most of the unprecedented US tariffs on its trading partners. But the party didn't last long, and now traders are bracing for the possibility of a global recession.

Sure, the U.S. tariff pause gave the short-term economic outlook a shot in the arm, but don't be fooled - the recession risks are still lurking in the shadows. Economists and analysts are sounding the alarm that the trade war is far from over. Just take a look at the 124% U.S. tariffs Trump has kept on China, the country's biggest trading partner.

And get this - Goldman Sachs is putting the odds of a recession at a nerve-wracking 45%. At the same time, they're betting that core inflation will peak at 3.5%. But Mark Zandi, the chief economist at Moody's, is even more bearish, estimating a 60% chance of a recession. Yikes!

Bitcoin, Ethereum Slip, While ETF Outflows Keep Rolling

The stock market's rollercoaster ride sent shockwaves through the crypto world too. Bitcoin (BTC) was trading at $79,195.25, down $4,000 from its daily high of $83,541, while Ethereum (ETH) took a 5.38% hit, dropping to $1,506.76. XRP (XRP) and Solana (SOL) weren't spared either, losing 3.82% and 6.00%, trading at $1.94 and $109.92, respectively.

And even though the previous day's rally had everyone feeling optimistic, crypto ETFs are still bleeding out. On April 9th, Bitcoin ETFs saw a net outflow of $127 million, following a staggering $326 million in net outflows the day before. Buckle up, folks - it's going to be a bumpy ride!