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Even Cathie Wood Now Predicts US Recession Coming – How Crypto Market Could Respond

Ark Invest CEO Cathie Wood predicts an impending recession, with the crypto market expected to react with high volatility.
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Even Cathie Wood Now Predicts US Recession Coming – How Crypto Market Could Respond

Highlights

  • Ark Invest CEO Cathie Wood warns against an impending recession.
  • The crypto market is likely to respond with high volatility.
  • The government and Fed may reduce tax and adopt loose monetary policies.

In line with many expert opinions, Ark Invest CEO Cathie Wood has voiced alarm on a potential recession in the United States. Wood’s warning, especially given her usual bullish stance, has caused ripples in the crypto industry. As the recession fears mount, experts remain pessimistic about the crypto market’s reaction, with many expecting high volatility and unpredictable price swings.

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Cathie Wood Warns of Economic Recession: Know More

Significantly, President Donald Trump’s tariff announcement has caused a stir in the US economy, with the traditional financial market falling to severe lows. Corroborating expert predictions, Ark Invest CEO Cathie Wood, who has been known for her optimistic long-term forecasts, has cautioned against the impending economic disaster.

Wood believes the administration is underestimating the economic impact of these policies, which could lead to a downturn. She cites the velocity of money slowing dramatically as a sign that consumers and businesses are spending and investing less.

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A Challenging Economic Period Ahead?

According to Cathie Wood, a challenging economic period is ahead. She believes that the first half of 2025 is poised to experience major downturns.

Wood stated that President Trump wants a booming economy and stock market ahead of the 2026 midterm elections. However, she added that the current economic situation will lead to negative GDP growth in the first two quarters due to a “three-year rolling recession.”

Another expert who has been long warning against an impending recession was Robert Kiyosaki, the author of “Rich Dad Poor Dad.” In his recent statement, Kiyosaki asserted that the worst crash has begun, with the US Dollar poised for a devaluation.

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Cathie Wood Reveals Key Government Strategies To Fight Recession

Notably, Cathie Wood expects the economic recession to prompt the administration and the Fed to adopt looser monetary policies. She notes that the government entering its first recession in 30 years will give policymakers more room to stimulate the economy.

It is noteworthy that the recession predictions come on the heels of the stock market’s recent collapse. As per Wood, potential measures could include tax cuts, deregulation, and lower interest rates to mitigate the economic downturn.

How Will Crypto Market React to US Recession?

Expert predictions note that the crypto market’s reaction to the US recession would likely be marked by increased volatility. Bitcoin’s strong correlation to traditional assets like stocks also hint at BTC and other cryptocurrencies’ price fluctuations.

However, Robert Kiyosaki urges investors to invest in BTC, gold, and silver to hedge against the imminent financial crisis.

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Nynu V Jamal

Nynu V Jamal is a Senior Journalist at CoinGape. She boasts more than 3 years of experience in content writing, with expertise in crypto and blockchain. She has contributed to platforms like CoinEdition and CryptoTale, demonstrating her proficiency in navigating the dynamic crypto landscape. Beyond her journalistic pursuits, Nynu is a literary enthusiast, having served as an Assistant Professor of English Language and Literature. She is a Master's degree holder in English Literature and a UGC NET qualifier. Her academic background has enabled her to publish research papers on literature, while also nurturing her creative side as a published poet. Her creative side extends to music, crafts, and art, which she actively explores. Her unique blend of analytical and creative skills allows her to craft engaging stories that captivate audiences. Stay updated with Nynu on LinkedIn

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Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
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