A growing sense of recession looms over the United States, with experts predicting a 40% chance of entering a downturn in 2025. This concern is fueled by the potential for an extended trade war and persisting economic uncertainty. Market analyst Nic Puckrin, known for his insights on cryptocurrencies through Coin Bureau, has voiced these concerns in recent interviews. He argues that while a recession isn’t inevitable, the current economic climate could negatively impact risk-on assets such as cryptocurrencies. Puckrin highlights President Trump’s administration’s actions, including cuts to federal jobs and spending cuts to balance the budget, which may inadvertently contribute to economic downturns. 2025 also saw U.S. Dollar Index (DXY) decline due to investors seeking more stable options in European markets, creating further uncertainty about US financial market stability. The trade war initiated by President Trump’s tariffs has caused a noticeable slump in cryptocurrencies like altcoins and Bitcoin, with the latter witnessing a 24% correction from its record-breaking peak in January 2025. This shift in sentiment, originally fuelled by Trump’s re-election victory, has now morphed into extreme fear as Bitcoin grapples with volatility. Expert opinions on the future of cryptocurrency markets are divided; some believe they might see a recovery if trade wars end or the Trump administration adjusts its stance. Research analyst Nicolai Sondergaard from Nansen predicts market pressure due to tariffs will persist until April 2025. Meanwhile, Markus Thielen, founder of 10x Research, believes Bitcoin may have bottomed out in March 2025 when President Trump’s trade rhetoric became less aggressive, hinting at a potential price reversal.