According to The Kobeissi Letter, a recession would directly impact key economic indicators by lowering interest rates, reducing inflation, and potentially enabling tariffs to help shrink the US trade deficit, while also relieving some pressure from US debt interest expenses (source: The Kobeissi Letter, May 23, 2025). For cryptocurrency traders, such macroeconomic moves could trigger increased volatility in Bitcoin and altcoin markets, as historic rate cuts and inflation dips have often led to renewed capital flows into crypto assets. Traders should monitor US recession signals closely for potential entry and exit points in major digital asset pairs.

According to The Kobeissi Letter, a recession would achieve most of Trump’s economic objectives, including lowering interest rates, reducing inflation, enabling tariffs to shrink the trade deficit, and cutting interest expenses on US debt (source: The Kobeissi Letter Twitter, May 23, 2025). For crypto traders, this macroeconomic shift could spur increased risk appetite as lower rates and inflation have historically benefited digital assets like Bitcoin. Additionally, policy-driven volatility in traditional markets may drive capital flows into cryptocurrencies as alternative investments. However, the negative side effects of a recession, such as reduced consumer spending, could also introduce short-term headwinds for risk assets (source: The Kobeissi Letter Twitter, May 23, 2025).