BTC Stays Near $80K as Howard Lutnick Minimizes Recession Risks

Howard Lutnick Downplays Recession Risks as Bitcoin Sinks Toward $80K

U.S. Commerce Secretary Howard Lutnick is pushing back against recession fears, dismissing concerns that Trump’s trade policies could hinder economic growth. Meanwhile, the crypto market is experiencing a sharp decline, with Bitcoin leading the drop.

During an appearance on Meet the Press on Sunday, Lutnick firmly rejected Wall Street’s warnings about an economic slowdown.

“Absolutely not,” he said when asked if Americans should prepare for a downturn. “There’s not going to be a recession in America. The same people who doubted Donald Trump’s success are now making these predictions. Trump is a winner, and he will deliver for the American people.”

A recession is defined as two consecutive quarters of economic contraction, often caused by a mix of internal and external factors.

Lutnick reinforced his stance on social media, linking Trump’s tariff measures to broader economic strength and national security efforts:

“The President is fully committed to protecting America’s economy. These tariffs are part of a bigger fight. Canada and Mexico must help stop the fentanyl crisis, and China must end its unfair subsidies. The Trump administration is taking a stand.”

Tariffs as a Growth Catalyst

Lutnick insists that Trump’s trade strategy will generate $1.3 trillion in new investments and stimulate economic expansion by forcing other nations to lower trade barriers.

“We’re unleashing the power of American industry,” he stated, dismissing concerns from JPMorgan and Goldman Sachs about a tariff-driven recession. “The next two years will showcase unprecedented economic growth led by the U.S.”

While he acknowledged that tariffs could increase costs for imported goods, he argued they are essential for reducing the trade deficit and lowering borrowing costs.

“When you balance the budget, interest rates fall by 150 basis points. Mortgage rates come down, making homeownership more affordable,” Lutnick claimed.

Crypto Markets Reflect Investor Anxiety

Despite Lutnick’s optimism, the crypto market is signaling caution. Bitcoin (BTC) fell 7% on Sunday, slipping to $80,000 and approaching its yearly low of $78,000.

Ethereum (ETH), Solana (SOL), and XRP (XRP) also saw declines, while meme coins like Dogecoin (DOGE) and Cardano (ADA) posted even steeper losses of nearly 12%.

On prediction platform Polymarket, traders have increased their bets on a 2025 U.S. recession, with the probability climbing to 41%—a 16% jump in recent weeks.

Economic Indicators Paint a Mixed Picture

The latest U.S. jobs report showed 151,000 new positions added in February, aligning with expectations. However, the unemployment rate edged up to 4.1%, and January’s job gains were revised downward, according to CoinDesk.

Public sector layoffs due to White House budget cuts could push unemployment figures higher in the coming months.

While the labor market has remained stable, early signs of a slowdown are emerging. The Atlanta Fed’s GDPNow model projects a -2.8% GDP growth rate for Q1, fueling concerns of an economic downturn.

That said, another Polymarket contract suggests just a 3% chance of a recession before May, indicating that the near-term outlook remains uncertain.