The crypto market is in a state of tension due to rising recession concerns after Donald Trump imposed new car tariffs. As per distinguished economists, the United States is approaching economic recession. Because of this, existing investors may opt out of Bitcoin, Ethereum and Shiba Inu digital currencies. With the uncertain economic conditions prevailing, will crypto succeed or will it struggle with another price drop?
Crypto Market Faces Uncertainty Amid Recession Warnings
The upcoming recession may make the cryptocurrency market extremely volatile. For instance, a decrease in metal demand intensified when Donald Trump introduced the new auto tariffs coupled with reciprocal trade policies. As per recent reports economic doubts have sparked predictions about how the Federal Reserve might react.
According to Mark Zandi’s assessment at Moody’s as a senior economist the US economy stands vulnerable to upcoming economic contraction. Consumer confidence rates have suffered a substantial drop reaching 17 points throughout the previous three months according to his analysis. Three additional points in the downward direction from current levels would officially confirm recession according to Zandi.
Bitcoin Price Prediction
Bitcoin is the market’s leading cryptocurrency, which mood affects all altcoins within the crypto industry. Recently, the price of BTC reached resistance around $88,500 thus shaping a rising wedge pattern. This technical pattern formation indicates upcoming bearish market movements.
The failure of Bitcoin to exceed $95,000 will likely initiate a dip that could reach $76,890, according to technical indicators. However, strong bullish momentum might provide an opportunity for BTC to start a new price surge. Market analysts predict that Bitcoin could be impacted by the Federal Reserve policies, such as interest rate cuts.
Ethereum Price Outlook
Ethereum has faced technical challenges after failing to maintain momentum above $4,000. The price has dropped below the critical neckline of a triple-top pattern, indicating a possible further downside.
The key support level for ETH lies at $1,746 marking a year-to-year low. If Ethereum remains below $2,120, bearish pressure may continue. Conversely, a breakout above $2,500 could shift momentum back in favor of buyers.
Shiba Inu Price Forecast
Shiba Inu has seen a significant price decline after reaching a high of $0.000035 in November. The token has since dropped to $0.00001125, testing a crucial ascending trendline that has held since March 2021.
SHIB is currently forming a rising broadening wedge pattern, which is typically bullish. If this formation holds, a rally toward $0.000025 is possible. However, a drop below the trendline could see SHIB decline further to $0.000070. 
Crypto Market’s Reaction to Economic Slowdown
Historically, recessions have prompted central banks to implement accommodative monetary policies. The Federal Reserve has previously responded by cutting interest rates and increasing liquidity. Such measures have often benefited Bitcoin and other digital assets, making them attractive as alternative investments.
If a recession occurs, investors may seek refuge in cryptocurrencies, particularly Bitcoin. However, market sentiment remains uncertain as regulatory scrutiny and macroeconomic conditions evolve.
The cryptocurrency market is at a critical juncture as economic concerns grow. BTC, ETH, and SHIB prices depend on key technical levels and broader market trends. Traders are closely watching Federal Reserve actions and geopolitical developments for further direction. As volatility persists, investors remain cautious about the future of digital assets in an uncertain economic landscape.
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