Mention of ‘recession’ causes light panic on Wall Street, dragging down stocks while Bitcoin tests support

There is no country in the world where ‘the state of the economy’ is as sacrosanct as it is in the United States. This was already clear in the 90s when Bill Clinton won the elections thanks to the slogan ‘it’s the economy, stupid’. In 2025 again, the economy is the main reason why American investors are fleeing the stock markets (and also why Bitcoin’s price level is dropping). The largest digital currency is increasingly flirting with the $80,000 level. The major support line around $75,000 will be very important this week.

Jobs report

The 25 percent import duties announced last week on all cars and car parts made outside the United States will go into effect on Wednesday.

According to economists, a global trade war could therefore be unleashed, a trade war in which everyone loses. The most important economic figure to be released this week however, is Friday’s jobs report.

The most important thing, however, was the fact that the word ‘recession’ is suddenly wandering around on Wall Street again. It was investment bank Goldman Sachs that put the term back on the front pages of major newspapers.

They now see a 35 percent chance of an economic recession happening in the US, whereas until last week it was only a 20 percent chance. If the global trade war escalates radically in the coming days, according to them, the S&P500 index could fall by around 17 percent in the coming days and weeks.

That is partly why analysts now think that the crypto market could also weaken further. Bitcoin has a fairly strong support line with lots of buyers around $75,000, but if the markets were to fall for several more days in a row, we’d have to watch to see if that line drops further.

There’s no real positive news to be found at the moment.