According to The Kobeissi Letter, a recession could align with several of President Trump's economic objectives, such as reducing US inflation, lowering treasury yields, cutting the trade deficit through tariffs, prompting Federal Reserve interest rate cuts, and decreasing oil prices (source: The Kobeissi Letter, May 21, 2025). These macroeconomic shifts typically drive risk-off sentiment in traditional markets, often leading to increased volatility in cryptocurrency markets as investors seek alternative assets. Crypto traders should monitor US economic data closely, as recession signals and Fed policy shifts can trigger significant price movements in Bitcoin and altcoins, especially with rising demand for decentralized stores of value during periods of economic uncertainty.

According to The Kobeissi Letter, a potential US recession could align with President Trump's economic objectives, including lower US inflation, reduced treasury yields, a smaller trade deficit, Fed rate cuts, and falling oil prices (source: The Kobeissi Letter, Twitter, May 21, 2025). For crypto traders, this scenario may drive increased volatility as traditional markets react to recessionary dynamics and policy shifts, possibly increasing demand for Bitcoin and stablecoins as alternative assets. Historically, rate cuts and weaker USD can benefit crypto prices, but investors should closely monitor macro data and policy announcements for trading signals.