Recession Panic Triggers "Black Monday": Stocks and Crypto Plummet, Did Hayes's Prediction Come True?

By: blockbeats|2025/03/11 11:15:03
0
Share
copy
Original Title: "Recession Panic Triggers 'Black Monday': Stocks and Coins Plunge, Hayes' Prediction Comes True?"
Original Author: Mary Liu, via BitpushNews

The bubble of "Buying Stocks and Relaxing" seems to be bursting.

Amid negative sentiments such as growing concerns about a U.S. economic recession, the U.S. stock market experienced a 'Black Monday' with the Dow falling 2% at the close of the day, the S&P 500 dropping 2.7%, and the Nasdaq plummeting 4%. Tesla (TSLA.O) crashed 15.4%, Apple (AAPL.O) fell nearly 5%, and Nvidia (NVDA.O) dropped 5%.

In the crypto market, BTC fell below the $80,000 mark for the second time in three weeks, reaching a low of $77,400 in the past 24 hours, while ETH revisited around $1800, and the total crypto market cap dropped by nearly 4%.

Arthur Hayes, the co-founder of BitMEX and a well-known figure in the crypto space, seems to be witnessing his earlier prediction coming true. He had forecasted that Bitcoin might drop to $75,000, and as market sentiment worsens, this prediction is becoming increasingly credible.

Recession Panic Triggers

In his latest tweet, Hayes reiterated that Bitcoin might further decline to $75,000 and warned, "If it enters this range, the market will experience severe volatility." He pointed out that the open interest near $75,000 has raised a 'red flag,' indicating an extremely pessimistic market sentiment.

Trump's Few Words Upend the Market, U.S. Economy Shadowed by Recession

U.S. Treasury Secretary Scott Bessent stated in an interview with CNBC on Friday that as the new administration reduces government spending, the U.S. economy may go through a "detox period."

In a Fox News interview aired on Sunday, Trump also responded to the possibility of an economic recession, stating that the economy is in a "transition period."

Trump said: "I have to build a strong nation; you can't just focus on the stock market."

Goldman Sachs has significantly lowered its economic growth forecast recently due to the potential impact of tariffs, further intensifying the market's pessimism about the U.S. economic outlook. New York Fed data shows that the February one-year inflation expectation is at 3.13%, and the expectation for the financial situation to worsen over the next year is the strongest since November 2023.

CFRA Research Chief Investment Strategist Sam Stovall told CNBC: "We are in the midst of a man-made adjustment. I call it a man-made adjustment because it is really in response to the new government tariff plan or at least the tariff threat, and what impact that will have on the economy."

Institutional analysis suggests that if the economic recession fears triggered by the trade war materialize, the Federal Reserve may begin a series of rapid rate cuts in June. The futures market has bet on rate cuts of 25 basis points in June, July, and October.

SGH Macro Advisors Chief U.S. Economist Tim Duy warned that if there is a labor or financial market slump, the Fed will face a dual risk: to deal with inflation and withstand Trump's pressure for rate cuts. However, whether rate cuts can save market confidence remains unknown.

Analyst: Bitcoin Needs to Experience a "Mini Recession" Before Rebounding

Institutional investors are exiting the crypto market, with crypto investment products seeing net outflows for the fourth consecutive week. According to CoinShares' data, crypto funds saw $867 million in outflows last week, totaling $4.75 billion over four weeks. Most of the bearish sentiment is coming from the U.S., with U.S. investors withdrawing $922 million last week.

NFT marketplace Mintology CEO Zach Burks stated that due to inflation concerns and Bitcoin's waning appeal as a "Trump trade," Bitcoin could drop to $72,000. He noted: "Many investors are pulling out of Bitcoin, viewing it as a high-risk asset for the first time since Trump took office."

Burks believes that Bitcoin has failed to decouple from the U.S. stock market, losing its function as a store of value tool. Instead, investors are turning to traditional safe-haven assets like gold. He predicts that although Bitcoin may rebound to $110,000 this year, the market must first weather this "mini recession" caused by Trump's policies.

EY Economist Gregory Daco told CNN that the uncertainty and chaos of Trump's policies are not helping the overall economic situation. He said: "The current situation is one of policy ambiguity, policy intent ambiguity, and policy objective ambiguity, all of which combined make investors anxious because where the policy is ultimately going is still unclear."

So, in this environment, Don't Fight it, Float with It. In the face of the storm, true wisdom may not be to fight against the current but to choose to drift with it safely, building strength before the storm hits.

Original Article Link

-- Price

--

You may also like

The era of regulatory arbitrage has come to an end, and the value of cryptocurrency exchange licenses is being fiercely contested

Understanding the true value of a license is the foundation for assessing the long-term sustainability of an exchange.

He Yideng ranked: Since you're here, you might as well

He Yi from Binance was selected for Fortune's "Most Powerful Women in Business" list, expressed gratitude to the community, and announced Binance's new vision: to build financial infrastructure serving 3 billion people worldwide.

Bitcoin Price Prediction 2030: Will BTC Really Hit $1 Million?

See what Ark Invest, Standard Chartered, and CoinCodex forecast for bitcoin price prediction 2030, plus the key risks and how to position. Full WEEX analysis.

Best Moomoo Alternatives in 2026: Trade Stocks, Gold & Forex With USDT

Looking for the best moomoo alternatives in 2026? Compare IBKR, Webull, Tiger Brokers, and crypto-native TradFi platforms like WEEX. Learn how traders are using USDT to trade stocks, gold, forex, and global markets without relying on traditional brokerage accounts.

Tokenized US Stock Duel: Ondo vs. xStocks, Who is Defining On-Chain Nasdaq?

Tokenization is redefining the issuance, holding, trading, and circulation of stocks.

WEEX GOGOGO EP3|LALIGA Road to Gold – 6 Explosive Moments, 1 World Cup Ticket, and a Night Nobody Will Forget

WEEX went live on May 24 with LALIGA, AI trading, 0-fee gold, and 100% APR. The chat exploded. The rewards flew. And one lucky fan walked away with a World Cup ticket. Here's what happened.

Popular coins

Latest Crypto News

Read more
iconiconiconiconiconiconicon
Customer Support:@weikecs
Business Cooperation:@weikecs
Quant Trading & MM:bd@weex.com
VIP Program:support@weex.com