The possibility of a U.S. recession looms large, posing a new and unprecedented test for the cryptocurrency industry. With the exception of a two-month recession during the COVID-19 pandemic, the crypto market has never truly experienced an economic downturn. Predictive models from the New York Federal Reserve indicate
a 68 percent likelihood of a recession within the next year, marking a significant increase in recessionary risk.
How the cryptocurrency industry reacts to a recession will depend on various factors, including its cause, duration, and severity.
However, there's a silver lining for long-term investors. Bitcoin, for instance, experienced substantial growth following the 2020 recession, surging over 900 percent. High-quality crypto projects with genuine utility could thrive as investors regain confidence amid economic recovery.