Economist warns of a recession: Will Bitcoin and altcoins crash or rise?

Here’s why Pi Network, Jasmy, LTC, Ethena, and altcoins are down

Bitcoin and most altcoins have bounced back slightly this week, with total crypto market capitalization approaching the $3 trillion mark.

Here’s why Pi Network, Jasmy, LTC, Ethena, and altcoins are down

Bitcoin remained stuck above $86,000, while meme coins like Pepe, Shiba Inu, and Floki soared by double digits this week. Mark Zandi, one of the top economists in the U.S. and Chief Economist at Moody’s, has warned that the country may be heading toward a recession. In a post on X, Zandi said that his top recession indicator was “flashing bright yellow,” signaling a potential downturn in 2025. He pointed to a sharp drop in consumer confidence—down 17 points over the past three months.

Here’s why Pi Network, Jasmy, LTC, Ethena, and altcoins are down

A recession is a bad period for any economy as the unemployment rate rises and businesses close. However, history shows that risky assets do well during a major downturn. For example, US stocks embarked on a decade-long bull run after the Global Financial Crisis in 2008. Most recently, after initially falling, stocks and cryptocurrencies embarked on a strong bull run. Bitcoin surged from $4,000 in March 2020 to $69,000 in November 2021. Similarly, Ethereum jumped from a low of $80 to $4,940 in the same period.