Crypto and Stock Markets Plunge as US Recession Odds Hit 40%

Financial markets suffered a severe shock on March 11, 2025, as crypto and stocks plummeted amid growing recession fears. Bitcoin fell to $76,000, its lowest point in four months, while the S&P 500 erased a staggering $1.4 trillion in market value—marking its worst trading day since 2022. Experts now estimate a 40% chance that the US economy may slide into recession this year, triggering widespread investor anxiety.

Crypto Assets Risk Face Massive Selloff

Investors rapidly abandoned high-risk investments as economic uncertainty intensified. The S&P 500 is now approaching a six-month low after experiencing its most devastating trading session in two years. The cryptocurrency market faced similar turmoil, with total liquidations reaching $954 million in a single day.

Ethereum dropped to $1,800, touching levels not seen since November 2023, while Bitcoin briefly hit $76,000. Most alternative cryptocurrencies have also retreated to multi-month lows. This simultaneous collapse across digital assets and traditional markets reflects growing concern about economic stability.

Recession Fears Mount Despite Official Reassurance

After prediction market Kalshi showed the odds of a US recession climbing to 40%, fears intensified, particularly due to the panic over the market. In response, gold, which has recently skyrocketed in value, became the safe investment to turn to.  This shift in investment behavior caused an exodus out of riskier assets. 

During a Fox Business interview, President Donald Trump stated that he does not rule out recession in 2025. His comments alone contributed to the market anxiety. He went on to discuss how his economic policies and tariffs will lead to short term disruption, saying ” There is a period of transition because what we’re doing is very big… We’re going to have a disruption, but we’re okay with that.” 

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“It is always best to stay bullish about the future”, these were the words of Federal Reserve Chair Powell. He commented earlier that day, the economy is doing well which is contrary to the fears of countless citizens. He did reiterate in response to The Golden State Pow-March sell off that the reason the market is looking to cut interest rates is to stimulate the economy which signals confidence in current market conditions.