Bitcoin Steady at $85K, While Dogecoin Dips 3% as Market Fears U.S. Economic Slowdown.

Crypto Market Stabilizes as Tariff Fears Ease, but Recession Concerns Linger

In the last 24 hours, the cryptocurrency market showed a mix of volatility and recovery, with VeThor (VTHO) surging by 37%, and Story Protocol’s IP token undergoing significant fluctuations, losing and then recovering 20%. This comes after a period of heavy sell-offs triggered by tariffs, with traders cautiously eyeing signs of stabilization in the markets.

Dogecoin (DOGE) dropped 3% while Bitcoin (BTC) and Ethereum (ETH) showed little movement, hovering around the $85,000 and $1,630 mark, respectively. While concerns about tariffs continue to ease, recession fears are rising as financial markets price in the growing likelihood of a downturn in the U.S. economy.

“There’s growing concern about a potential recession in the U.S., with market odds placing a 40% to 60% chance of one occurring in 2025,” said Augustine Fan, head of insights at SignalPlus. “Despite this, it’s often sentiment rather than the economy itself that shapes the market. Crypto assets have weathered recent turbulence better than traditional equities, and Bitcoin is benefiting from its ‘safe-haven’ status amid uncertainty.”

The CoinDesk 20 Index, tracking the top 20 cryptocurrencies by market cap, fell by 2% in the past day, with DOGE leading the declines. Solana (SOL), Tron (TRX), and Cardano (ADA) all saw a decrease of around 2.5%, while XRP and Binance Coin (BNB) remained largely flat. Bitcoin continues to hold steady around the $85,000 level, showing resilience in the face of broader market uncertainty.

Mantra’s OM token experienced a volatile trading session, dropping 90% in a short period on Sunday before bouncing back 20% in the following 24 hours. The token’s CEO addressed the sell-off, promising a recovery plan, but market analysts remain skeptical of the token’s prospects. Similarly, Story Protocol’s IP token saw a sharp 20% drop followed by a rapid rebound of over 30%, triggering fears of further erratic behavior.

VeThor’s (VTHO) price skyrocketed by 37% following an announcement that UFC President Dana White would join as a strategic advisor, bolstering optimism for the RWA-focused token’s potential mainstream adoption.

Market participants are keeping a close eye on the futures market, where risk reversals for Bitcoin still favor puts until June. “Bitcoin is consolidating within the $80,000-$90,000 range, with markets adopting a ‘wait and see’ approach to the tariff situation,” said QCP Capital. “The mid-term outlook remains cautiously bullish, with Bitcoin’s $100,000 call options drawing significant interest, indicating that traders expect higher levels in the coming months.”

Despite the market’s volatility, some traders believe that the worst may be behind us, thanks to the Federal Reserve’s assurances of potential interventions if the trade situation worsens. “The Fed’s stance on stabilizing the market is helping bolster confidence in Bitcoin,” said Jupiter Zheng, partner at HashKey Capital. “We remain hopeful that with ongoing trade talks, the situation will improve and the crypto market can continue its recovery.”