11.03.2025 13:25
The Wall Street giant JPMorgan has raised the likelihood of the U.S. entering a recession from 30% at the beginning of 2025 to 40%. This upward revision in forecasts has led to sharp sell-offs across all markets, particularly in cryptocurrencies and technology stocks. While optimistic statements from President Trump's economic advisors were not enough to calm the markets, the S&P 500, Nasdaq, and all cryptocurrencies experienced significant losses.
Recession fears, defined as an economic contraction where an economy shrinks for two consecutive quarters, have led to selling pressure on all high-risk assets, including Bitcoin (BTC) and other cryptocurrencies. The total value of the cryptocurrency market shrank by approximately $240 billion in a single day. Major investment banks like Morgan Stanley and Goldman Sachs have also lowered their economic growth forecasts while raising inflation expectations.
Analysts: "Risk Will Increase If Trump Insists on His Policies"
JPMorgan economists indicate that the risk of the U.S. entering a recession this year has significantly increased due to "excessive U.S. policies." According to the Wall Street Journal, bank analysts revised the probability of recession from 30% at the beginning of 2025 to 40%.
Goldman Sachs economists similarly raised the 12-month recession probability from 15% to 20%. Analysts warned that this forecast could increase further if the Trump administration "sticks to its policies despite much worse data."
Economic concerns quickly reflected in the markets. The S&P 500 fell by 2.7%, reaching its lowest level since September, while the tech-heavy Nasdaq showed its worst performance since 2022. The 'Magnificent 7,' known as America's most valuable tech companies, lost more than $750 billion in market value in a single day.
These 7 companies, known as America's most valuable tech firms, experienced significant value loss under the shadow of recession fears. AI giant Nvidia fell by 5.1%, while Apple shares dropped by 4.9%. Meta lost 4.4%, and Alphabet declined by 4.5%. The sharpest drop was seen in Tesla, whose shares plummeted by 15%, making it the worst-performing stock in the S&P 500 index for 2025. These companies collectively lost more than $750 billion in market value in just one day.
Bitcoin fell below previous support levels, dropping to $76,784. The total value of the cryptocurrency market decreased by 7.5%, falling to $2.6 trillion. This decline caused crypto assets to reach their lowest level since early November.
The Trump administration is trying to calm economic concerns. National Economic Council Chairman Kevin Hassett stated, "There are many reasons to be extremely optimistic about the economy going forward," while President Trump expressed in an interview that the economy is experiencing "a transition period."