Deutsche Bank Says America's Recession is Close 50-50

[retreat]

After issuing several economic policies to improve the US economy, it seems that it is not working as Trump expected. A report from Deutsche Bank said that the chances of America going into recession are close to 50-50—making many question where the US economy is headed. This is further strengthened by consumer confidence falling to a 4-year low and unemployment remains low and higher inflation and slower growth. At the same time, a few weeks ago Powell also said that he was worried about America heading into recession, although he was still optimistic that the US economy was still strong enough to withstand it.

With the increasing chances of an American recession, it makes people worried that it will have a negative impact on the economy and make their lives more difficult.

_{*For those of you who don't know, a recession is a bad thing, because the impacts are quite broad, for example, layoffs, decreased purchasing power, potential bankruptcy for businesses, and many other things.}

source:
https://www.cnbc.com/2025/03/24/the-probability-of-a-recession-is-approaching-50percent-deutsche-markets-survey-finds.html

[Ziskinberg]

I’m wondering how a recession would impact crypto. when a recession hits, people lose income or experience a decline in earnings, which reduces their ability to invest. But, bitcoin is often considered a hedge against inflation when a country faces economic problems, but would this actually increase the demand for Bitcoin, or would it have the opposite effect?

[shinratensei_]

time like this always makes me confused as heck, whether to stash money or crypto, but big chunk of my portfolio made up of crypto anyway, really hoping that the recession if truly come won't be that bad so the like of crypto can instead become hedge against inflation. even better if there won't be any recession at all.

I’m wondering how a recession would impact crypto. when a recession hits, people lose income or experience a decline in earnings, which reduces their ability to invest. But, bitcoin is often considered a hedge against inflation when a country faces economic problems, but would this actually increase the demand for Bitcoin, or would it have the opposite effect?

it depends in my opinion, if the recession is so bad people might sell their BTC, or any other investments, so not only limited to crypto.
hopefully this won't happen.

[landheer]

I’m wondering how a recession would impact crypto. when a recession hits, people lose income or experience a decline in earnings, which reduces their ability to invest. But, bitcoin is often considered a hedge against inflation when a country faces economic problems, but would this actually increase the demand for Bitcoin, or would it have the opposite effect?

There is a possibility that there will be a decrease in demand for bitcoin when a recession occurs, because they think that investing in this asset can fluctuate with the uncertainty that occurs, with this thought, investors will reconsider investing in bitcoin, but sometimes crypto assets can rise during a recession, and the possibilities can happen depending on how high the recession occurs.

[Ziskinberg]

I’m wondering how a recession would impact crypto. when a recession hits, people lose income or experience a decline in earnings, which reduces their ability to invest. But, bitcoin is often considered a hedge against inflation when a country faces economic problems, but would this actually increase the demand for Bitcoin, or would it have the opposite effect?

it depends in my opinion, if the recession is so bad people might sell their BTC, or any other investments, so not only limited to crypto.
hopefully this won't happen.

If they sell Bitcoin, can they guarantee that the money they cash out will grow?

I think Bitcoin could be more helpful if they just keep it in their wallet. Just like in the past, when the market drops, it’s usually temporary. A recession means an entire country’s economy is struggling, but now that Bitcoin is owned by many in the U.S., it might be wiser to just hold onto it and wait for it to grow.

Of course, even if it profits, the real risk comes when you cash out. That’s why we should always have a separate source of income as investments alone can’t be a consistent way to earn.