Recession Fears Ease—Will Bitcoin Ride the Risk-On Wave?

Wall Street's crystal ball just got less gloomy: US recession odds now sit at just 26%. Cue the champagne corks popping in boardrooms—or at least, the slightly less frantic rearranging of deck chairs.

But here's the real question traders are asking: Will Bitcoin shake off its recent slump as risk appetite returns?

The crypto market's been trading like a leveraged bet on macroeconomic doom. With storm clouds potentially lifting, the digital gold narrative could get fresh legs—assuming the Fed doesn't yank the punch bowl away again.

One thing's certain: When traditional finance starts breathing easier, crypto traders start buying faster. Whether that translates to sustained recovery or just another speculative blip? Well, that's why they call it gambling.

As per the historic sentiments, whenever a sharp change has been observed in the “US recession in 2025?” chart, the crypto market has also witnessed increased price action within a short time frame. Taking an example of a major drop that was witnessed between 11th & 12th of May, the percentage dropped from 56% to 39%.

Bitcoin Reacts to Recession Fears

This resulted in the price of Bitcoin dropping from $104,701.07 to $102,569.44, a change of 2.13% within hours. However, during the recent drop from 30% to 26% that was recorded today, the crypto market defied the odds and witnessed a positive reversal.

Over the past 21 hours, the Bitcoin price has jumped to $105,106 from $100,550 that was recorded at 02:30 Am (IST). This shows a change in the pattern, indicating a mixed-price action for this crypto.

At the time of writing, the value of one BTC was $105,100.70 with an intraday change of 1.35%. Moreover, with a surge of 47.35%, it has recorded a volume of $62.59 billion. With this, the dominance of it has increased to 63.6457%.

How The Bitcoin Price Could Perform Next Week?

In case of a sustained bullish action, the bitcoin price could continue recording its upward trajectory for the upcoming week. If the BTC price breakout of its important watch zone of $106,000, the immediate resistance levels for the BTC token are $108,000 and $110,000, respectively.

Negatively, a bearish setback may result in it retesting its important support level of $102,000. Furthermore, if the bulls fail to regain momentum at that point, it could further plunge toward its lower support zone of $100,000 during the upcoming week.

Also Read: BREAKING: Gemini Exchange Files for IPO After Circle’s NYSE Debut