Bitcoin and many crypto coins took a sharp dive on Thursday

Pi Network was among the hardest hit, falling to a new low of $0.56, marking an 80% drop from its peak in February.

Bitcoin and several other cryptocurrency coins took a sharp dive on Thursday, causing their collective market value to drop by over 5.7% to $2.6 trillion.

Among the hardest-hit coins was Pi Network, which fell to a new low of $0.56, marking an 80% drop from its peak in February.

Pepe, the third-largest meme coin, also saw a steep decline of 17%, while Ethena plummeted by 18%. Other altcoins, including Hyperliquid, Berachain, Bonk, Jito, and Official Trum, saw losses exceeding 15%.

This steep decline came as the chances of a U.S. recession soared. Polymarket now places the probability of a recession at over 70%. MetLife raised its recession odds to 40%, while Goldman Sachs and PIMCO increased theirs to 35%.

These changes followed an announcement by Donald Trump, who imposed tariffs on all countries exporting goods to the U.S. Analysts view these tariffs as a potential game-changer for the global economy.

Several nations have already vowed to retaliate. Canada, for example, imposed a 25% tariff on U.S.-made vehicles, risking further escalation. Trade Secretary Howard Lutnick warned that tariffs could rise even more in the future.

The crashes in major crypto coins like Pepe, Pi Network, and Ethena were reflected in U.S. stocks, which also saw significant declines. The Dow Jones, Nasdaq 100, and S&P 500 dropped by 1,200, 200, and 815 points, respectively.

A sense of panic swept through the market, with the fear and greed index falling into extreme fear at 11. Meanwhile, the crypto fear index also plunged to 24.

However, history suggests that bull markets often begin when fear is at its peak. The CNN Fear and Greed Index last hit such a low in March 2020, right before the COVID-19 pandemic sparked a massive market rally after the Federal Reserve’s intervention.

Therefore, there is potential for Bitcoin and altcoins like Pi Network, Pepe, and Ethena to recover once the current panic-driven sell-off subsides.