News 
March 26, 2025 
3 min. 
The cryptocurrency market has shown signs of recovery this week, with total market capitalization inching closer to the $3 trillion milestone.
Bitcoin managed to hold steady above $86,000, while meme coins experienced a significant surge. Pepe, Shiba Inu, and Floki recorded double-digit gains, capturing investor attention with their strong rallies.
Economist Warns of Impending Recession
Mark Zandi, Chief Economist at Moody’s and a leading financial expert, has raised concerns about a potential U.S. recession.
Taking to X (formerly Twitter), Zandi highlighted a key economic warning sign—consumer confidence has plummeted by 17 points in just three months. According to his analysis, a 20-point drop over the same period typically triggers a spending freeze, which can push the economy into recession.
A technical recession occurs when the U.S. economy experiences negative growth for two consecutive quarters. With current trends pointing toward economic instability, investors are left wondering whether Bitcoin and altcoins will thrive as safe-haven assets or face a downturn alongside traditional markets.
Could Bitcoin and Altcoins Thrive in a Recession?
A recession is typically a challenging time for economies, marked by rising unemployment and widespread business closures. However, history suggests that risky assets tend to outperform in the economic downturn.
For example, following the 2008 Global Financial Crisis, U.S. stocks kicked off a decade-long bull run. More recently, despite an initial drop, both stocks and cryptocurrencies experienced a strong rally after the 2020 market crash. Bitcoin skyrocketed from $4,000 in March 2020 to an all-time high of $69,000 by November 2021. Ethereum followed suit, surging from $80 to nearly $4,940 within the same period.
This dramatic rebound was largely fueled by the Federal Reserve’s intervention. The Fed has a history of implementing rate cuts and quantitative easing during downturns, making capital more accessible and encouraging investors to take on more risk. If a recession unfolds as some economists predict, Bitcoin and altcoins could benefit from similar macroeconomic conditions.
Even if the U.S. manages to avoid a full-blown recession, cryptocurrencies may still see positive momentum. This is because the potential downturn is linked to economic policies, such as tariffs imposed under Donald Trump’s administration. If these policies are reversed or adjusted, investor confidence in risk assets, including crypto, could strengthen once again.
With uncertainty looming, one question remains: will Bitcoin and altcoins prove their resilience in the face of economic turbulence?
