Dogecoin Dips 3%: Bitcoin Holds Steady at $85K Amid U.S. Recession Fears and Market Volatility

In the ever-evolving landscape of cryptocurrency, recent market movements have drawn significant attention. Dogecoin (DOGE) experienced a notable decline of 3% over the past 24 hours, while Bitcoin (BTC) and Ethereum (ETH) remained relatively stable, hovering around the $85,000 mark. As concerns regarding tariffs begin to ease among traders, anxiety over a potential U.S. recession is becoming more pronounced in betting markets.

Rising Recession Concerns in the U.S.

Prominent financial analysts are increasingly voicing their apprehensions about an imminent recession in the United States. According to Augustine Fan, head of insights at SignalPlus, betting markets are currently estimating a 40% to 60% probability of a recession occurring by 2025. In a recent Telegram message to CoinDesk, Fan stated, “Our view is that it probably doesn’t matter, as sentiment often frames reality, not the other way around.”

Bitcoin as a ‘Store of Value’

Amid these economic uncertainties, Bitcoin seems to be cementing its status as a ‘store of value.’ Fan emphasized that recent volatility in equities has made Bitcoin a more attractive option for risk-averse traders. “Crypto has benefited from the recent shake-out, as equities have been realizing higher volatility than Bitcoin through the risk-off move,” he explained. This trend is leading many to believe that Bitcoin’s long-term narrative as a safe asset is regaining traction.

Market Performance: Major Cryptocurrencies Take a Hit

Data from the broad-based CoinDesk 20 (CD20) index indicates that major cryptocurrencies have experienced a decline, with an overall drop of nearly 2%. Dogecoin led the losses, and other notable cryptocurrencies such as Solana (SOL), Tron (TRX), and Cardano (ADA) witnessed declines of up to 2.5%. In contrast, BNB Chain’s BNB and XRP remained largely unchanged as Bitcoin held steady at the $85,000 level.

Mantra’s OM Token: A Rollercoaster Ride

In a surprising turn of events, Mantra’s OM token recorded a staggering 20% rise over the past 24 hours, trading at 63 cents during the Asian morning hours on Tuesday. This comes after a bizarre sell-off that saw the token lose an astonishing 90% of its value in just one hour late Sunday. The CEO has since announced a recovery plan, although market watchers remain skeptical about the feasibility of any promises made.

Story Protocol’s IP: A Volatile Journey

Similarly, Story Protocol’s IP experienced a sharp 20% drop, only to rebound by more than 30% within hours late Monday. Early fears of an OM-like sell-off have created a ripple effect throughout crypto circles, adding to the overall market anxiety.

VeThor’s VTHO: A Surge in Value

In a contrasting performance, VeThor’s VTHO surged by 37% following the announcement that UFC CEO Dana White has joined the protocol as a strategic advisor. This partnership has sparked hopes for mainstream adoption and recognition of the RWA-focused token, further emphasizing the unpredictable nature of cryptocurrency.

Market Sentiment and Future Outlook

According to Singapore-based QCP Capital, BTC risk reversals are still skewed in favor of puts until June, suggesting that traders are exercising caution in the near term. However, the sentiment further out appears to be turning more positive. QCP noted aggressive buying of 800x BTC-27MAR26-100k-C options on Saturday, indicating a growing belief in Bitcoin’s future potential.

Consolidation Within $80K-$90K Range

Currently, Bitcoin is consolidating within the $80,000 to $90,000 range, adopting a “wait and see” approach to the evolving tariff situation. The $100,000 call option has emerged as the most favored bet among traders, with a notional open interest nearing $1.2 billion. This suggests that many are betting on a significant price rally in the mid-term.

Federal Reserve’s Intervention: A Stabilizing Force

Market analysts are optimistic that the recent upward trend can be attributed to the Federal Reserve’s assurance of readiness to intervene and stabilize markets in the event of a crisis triggered by tariffs. Jupiter Zheng, a partner at HashKey Capital, noted, “As the US engages in trade negotiations with other nations, we remain hopeful that the most turbulent period may be behind us.”

Conclusion: Navigating the Cryptocurrency Landscape

As we navigate through this volatile cryptocurrency landscape, it is crucial for investors to stay informed and vigilant. The interplay of economic factors, market sentiment, and the ongoing developments in the crypto world will continue to shape the future of Bitcoin, Dogecoin, and other major cryptocurrencies. For those looking to dive deeper into cryptocurrency trading, consider exploring how to buy Bitcoin, how to buy cryptocurrencies, and the latest reviews of popular exchanges like Kraken and Binance.