Bitcoin and most altcoins remained under pressure this week even as the US published encouraging inflation data. The price of BTC has slipped to $80,000, while the market cap of all coins dropped to $2.6 trillion.
Ondo, Jasmy, Cardano, and Chainlink Lead Losses
Popular altcoins like Ondo, Jasmy, Cardano, Chainlink, and AAVE were some of the top laggards in the last seven days as their tokens fell by over 20%. The price of Ondo has dropped by over 62% from its highest level in 2024, while Jasmy has retreated by over 78% in the same period. Cardano and Chainlink prices have also been in a freefall.
The stock market also crashed this week, with the Nasdaq 100 index plunging to a low of $19,225, its lowest level since September last year. Worse, as shown below, the spread between the 50-day and 200-day Weighted Moving Averages (WMA) is narrowing, risking the formation of a death cross pattern, which often leads to more downside.

Other American indices like the S&P 500 and the Dow Jones have also crashed. The Dow Jones index fell by 535 points, while the S&P 500 and Russell 2000 indices retreated by 80 and 30 points, respectively.
Why Crypto and Stocks Have Crashed
There are two main reasons for the ongoing crypto and stock market crash. First, Donald Trump has implemented a series of tariffs against countries like Canada, Mexico, and China. On Thursday, he warned that he would implement a 200% tariff on champagne from France after the European Union retaliated against his steel and aluminium tariffs.
These tariffs have led to concerns that the US will suffer a recession this year. Companies such as JPMorgan, PIMCO, and Goldman Sachs have increased their recession probabilities this year.
Second, there are fears that the US government will go through a shutdown this weekend. The House of Representatives voted for a new spending package that includes some cuts and increases in defense spending.
This bill now needs to pass the Senate, which needs 60 votes, of which Democrats have vowed not to provide. As such, there is a likelihood that the government shutdown will happen and last for a few days.
On the positive side, a recession would be a potentially positive development for stocks and the crypto market because of the Federal Reserve. In the past, the Fed usually slashes interest rates when there is a recession, which in turn, fuels the stock and crypto market. A good example of this is what happened during the COVID-19 pandemic and the Global Housing Crisis.
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