Bitcoin Plunges Below $80,000 as Recession Talk Shakes Markets

Bitcoin dropped below $80,000, landing at $79,856—a nearly 3% slide since Tuesday. It’s been a rough ride lately, with the crypto losing 35% of its value in just three months. The broader crypto market isn’t faring much better, shedding $1.3 trillion since its December 2024 peak.

Trump’s words suggested he’s okay with short-term pain if it means big reforms down the road. But that’s cold comfort for traders right now. The Federal Reserve’s recent warnings about a possible recession only made things worse. Wall Street’s feeling it too—the S&P 500 has lost $5 trillion in just 13 days.

Risky investments are getting hammered. Big tech stocks like Tesla, a favorite among bold traders, saw a massive 15.4% drop in a single day. People are pulling cash out of anything high-stakes, and Bitcoin’s no exception. Google searches for “US recession” are spiking, a bad sign that often comes before market chaos.

Some think a slowdown could mean lower interest rates, which might lift Bitcoin later. But for now, it’s a rocky road. Prediction markets are pegging a recession at 40%—not great odds. Buckle up; volatility’s here to stay.