Wall Street crash: Is the economy being pushed into recession?

On March 10, 2025, the US financial markets suffered a sharp decline, with significant losses in major stock indices and a noticeable impact on the cryptocurrency sector. Investor confidence was shaken by former President Donald Trump’s recent economic and trade policies, as well as growing fears of an impending recession.

📊 Market losses

The main stock market indices are recording worrying declines:

• Dow Jones : -2.1% (-890 points)
• S&P 500 : -2.7% (biggest drop since December 2024)
• Nasdaq : -4% (six-month low)

Tech giants were hit hardest: Tesla fell 15% , while Apple, Microsoft, Alphabet (Google) and Amazon lost between 2% and 5% .

The cryptocurrency market was also affected:

• Bitcoin (BTC) fell 6% , falling below the $60,000 support level.
• Ethereum (ETH) fell 8% as institutional investors pulled out.
• Altcoins suffered double-digit losses , deepening the cryptocurrency sector's downfall.

⚠️ Key Facts: How is Trump affecting the markets?

1️⃣ Political and economic uncertainty

Since his return to politics, Trump has implemented economic measures that have left markets in a state of uncertainty. His protectionist stance , aimed at strengthening the US economy through aggressive tariffs and trade restrictions , has increased tensions with important partners such as China and the EU.

2️⃣ Trade war and new tariffs

Trump's new tariffs on Chinese and European goods have triggered retaliatory measures, fueling fears of a prolonged trade war that could slow global growth .

3️⃣ Fear of recession

In a recent interview, Trump refused to rule out a US recession, sending shockwaves through markets . His comments were seen as a tacit admission that economic growth could be at risk.

4️⃣ Impact on the dollar and cryptocurrencies

Trump's economic policies have caused volatility in the dollar , with an initial surge followed by a fall as investors sought safe haven assets. Bitcoin, often seen as a hedge against financial instability , faced massive sell-offs in turn , as risk aversion took hold.

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📌What  's next?

🔹 Investors are looking for safe haven assets

Amid growing uncertainty, US Treasury bonds saw increased demand, leading to a drop in yields. The VIX volatility index soared 19.5% and hit its highest level since December 2024.

🔹 Future prospects for cryptocurrencies

Despite recent declines, some analysts believe Bitcoin and Ethereum could benefit in the long term as investors look for alternatives outside the traditional financial system.

🔹 Markets are watching for policy changes.

The next few days will be crucial in determining whether Trump softens his trade stance or whether markets remain in a prolonged bear cycle . Investors will be closely watching economic policies and any signs that a recession is approaching.