Bitcoin and most cryptocurrencies slumped on Thursday

Their total market capitalization plunging by over 5.7% to $2.6 trillion.

Bitcoin and most cryptocurrencies slid on Thursday, with their total market capitalization plunging by over 5.7% to $2.6 trillion.

According to reports by CCXV and AZCoin News, the crypto fear and greed index moved to the extreme fear zone of 11, while the U.S. presidential candidate, Donald Trump announced tariffs on all countries that export their goods to the U.S., calculus optimism on the bidders' side. Economists polled by Polymarket now have a 70% probability of a U.S. recession. Financial services firm MetLife upped its recession odds to 40%, and both Goldman Sachs and PIMCO raised their forecasts to 35%. Economists polled by Polymarket now have a 70% probability of a U.S. recession. Financial services firm MetLife upped its recession odds to 40%, and both Goldman Sachs andPIMCO raised their forecasts to 35%.

These odds surged as several countries pledged to retaliate after Trump announced tariffs of up to 100% on all products ranging from Canadian plywood to French wine. Canada announced a 25% tariff on U.S.-made vehicles, which could escalate further. In an interview with Bloomberg, U.S. Trade Secretary Howard Lutnick warned that tariffs on retaliating countries could rise even further.

The sharp decline came as U.S. presidential candidate, Donald Trump announced tariffs of up to 100% on all products ranging from Canadian plywood to French wine. Several countries pledged to retaliate. Canada announced a 25% tariff on U.S.-made vehicles, which could escalate further. In an interview with Bloomberg, U.S. Trade Secretary Howard Lutnick warned that tariffs on retaliating countries could rise even further.

The crash in top altcoins like Pepe, Pi Network, and Ethena mirrored declines in U.S. equities. The Dow Jones,Nasdaq 100, and S&P 500 fell by 1,200, 200, and 815 points, respectively.

They also dropped as a sense of fear spread in the financial market. The fear and greed index moved to the extreme fear zone of 11, while the crypto fear index plunged to 24.

On the positive side, bull market cycles often begin when fear is at its peak. For example, the last time the CNN Fear and Greed Index hit this level was in March 2020 which coincided with the start of the COVID-19 pandemic. Stocks and crypto began a historic rally after the Federal Reserve intervened with rate cuts and liquidity support.

Therefore, there is a possibility that Bitcoin and altcoins like Pi Network, Pepe, and Ethena will bounce back once the current wave of panic selling ends.