Amid fears of a U.S. recession and geopolitical uncertainty that rocked global markets this week, analysts weighed in on the probability of an economic downturn this year and the impact that could have on bitcoin and other cryptocurrencies.

“The fear of a global recession is indeed plausible given the current economic indicators and the recent actions of central banks,” analysts at crypto exchange Bitfinex told The Block via email. “Over the past three months, central banks have executed 35 rate cuts, surpassing the rate cut levels of early 2024. This proactive easing is reminiscent of the 2009 financial crisis, which saw 76 cuts at its peak.”

The Bitfinex analysts highlighted that despite some improvements in the inflation outlook this year, with global inflation levels expected to …