Amid new economic forecasts, the cryptocurrency market is experiencing significant declines. Bitcoin and many altcoins have lost value, raising concerns among investors.
Cryptocurrency Crash and Its Causes
Bitcoin and most cryptocurrencies fell on Thursday by over 5.7%, with total market capitalization plummeting to $2.6 trillion. Pi Network was one of the worst performers, dropping to a record low of $0.56, down over 80% from its peak in February.
Market Reaction to Economic News
The decline came as fears of a US recession escalated. According to Polymarket, the odds of a recession rose to over 70%. Companies like MetLife and Goldman Sachs have also raised their recession likelihood forecasts.
Outlook for Cryptocurrency Recovery
Despite the current panic, history shows that bull markets often begin when fear is at its peak. Analysts suggest that Bitcoin and altcoins like Pi Network and Pepe could recover once the current wave of panic selling ends.
While the current situation raises concerns, history shows that markets can recover. Investors should keep a close watch on developments.
