Bitcoin and stocks experienced a downturn as reality set in on Wall Street, with recession concerns beginning to shape market sentiment.
Throughout the trading day, both stocks and cryptocurrency markets retreated, reversing much of the gains made the day before. On Thursday, April 10, the S&P 500 closed at 5,233.61, down 223.36 points, or 4.31%. The Dow Jones also fell, ending at 39,296.45, a decrease of 1,312.00 points, or 3.23% from the previous day. The Nasdaq composite dropped by 4.66%, or 790.22 points, settling at 16,333.49.
This decline followed the S&P 500’s third-largest daily gain in its history and the strongest performance since October 2008. This surge was in response to a 90-day pause initiated by then-President Trump regarding significant tariffs imposed on trading partners. However, as reality set in, traders began to factor in the risk of a global recession.
While the temporary halt on U.S. tariffs enhanced the near-term economic outlook, concerns about a recession linger. Experts observe that the trade conflict is far from resolved, citing that Trump has retained a 124% tariff on imports from China, the nation’s top trading partner.
Goldman Sachs currently estimates the likelihood of a recession at 45%. The firm also anticipates that core inflation could reach a peak of 3.5%. Meanwhile, Mark Zandi, chief economist at Moody’s, projects a 60% chance of a recession occurring.
Bitcoin, Ethereum dip as ETF outflows persist
The downturn in the stock market also affected cryptocurrency values. Bitcoin (BTC) was trading at $79,195.25, down $4,000 from its daily high of $83,541, while Ethereum (ETH) fell to $1,506.76, decreasing by 5.38%. XRP dropped by 3.82%, and Solana (SOL) suffered a 6.00% loss, trading at $1.94 and $109.92, respectively.
Despite the previous day’s upswing, crypto ETFs are still witnessing outflows. On Wednesday, April 9, Bitcoin ETFs recorded a net outflow of $127 million, following a net outflow of $326 million on Tuesday.