Buckle Up, Crypto Fans: Bitwise Warns Bitcoin's Recession Rollercoaster Ain't Over Yet!

Bitcoin's Wild Ride: Past Recessions and Future Fears

Hang onto your hats, crypto enthusiasts! While Bitcoin might've already taken a beating from recession jitters, Bitwise analysts are sounding the alarm: there could still be some stomach-churning drops ahead if the U.S. economy takes a nosedive.

Yeah, you heard that right. Bitcoin and its altcoin buddies have been on a wild ride, with prices already reflecting a lot of those recession fears. But if the economy actually crashes, brace yourself for more downside action.

Check this out: Bitwise's research report dives into Bitcoin's past performance during recessions, and it's a mixed bag. Remember the 2020 Covid crash? Bitcoin plummeted over 50%, but then skyrocketed more than 300% by year's end. Talk about a rollercoaster!

Based on that wild ride, Bitwise's analysts are saying, "Yo, if stocks keep tanking, Bitcoin's gonna feel the heat too." And guess what? Bitcoin's already down about 27% from its peak, so it looks like those recession fears are already baked into the price.

But here's the kicker: Bitwise's warning that "U.S. recession fears are already being priced into bitcoin and other cryptoassets as we speak, but there might still be a little bit more downside left if a U.S. recession actually materializes." Yikes!

Bitwise

Now, hold up, there's more. Bitwise's analysts are also spotting signs of "peak uncertainty," with U.S. economic policy uncertainty and Google searches for "recession" hitting levels as high as during Covid. It's like déjà vu all over again!

And get this: QCP Capital's analysts are keeping a close eye on President Donald Trump's upcoming "Liberation Day" announcement on April 2. Rumor has it, he's gonna drop some new reciprocal tariffs, and that could send markets into a frenzy.

With consumer confidence at a 12-year low and stocks already feeling the heat from a 4-5% weekly drop, aggressive trade moves could crank up those recession fears and put even more pressure on risk assets like Bitcoin. It's like a perfect storm brewing!