Dogecoin (DOGE) shed 3% while bitcoin (BTC) and ether (ETH) remained flat

Prominent financial figures have started to warn that the U.S. is heading into an imminent recession

Bitcoin (BTC) and ether (ETH) remained flat in the past 24 hours as tariff concerns gradually subsided among traders, though fears of a U.S. recession increased in betting markets.

Prominent financial figures have started to warn that the U.S. is heading into an imminent recession, with betting markets placing 40% to 60% odds of one happening in 2025, Augustine Fan, head of insights at SignalPlus, told CoinDesk in a Telegram message.

"Our view is that it probably doesn't matter, as sentiment often frames reality, not the other way around," Fan said.

"As such, crypto has benefited from the recent shake-out, as equities have been realizing higher volatility than Bitcoin through the risk-off move. A beggar-thy-neighbour policy with tariffs has pushed spot gold to ATHs, with BTC finally regaining some of its long-lost ‘store of value’ narrative," Fan added.

Crypto majors tracked by the broad-based CoinDesk 20 (CD20) slid nearly 2%, data shows, with DOGE leading losses. Solana's SOL, tron (TRX) and Cardano's ADA lost as much as 2.5%, BNB Chain's BNB and xrp (XRP) were little changed as bitcoin clung to the $85,000 level.

Mantra's OM token showed a 20% rise over the past 24 hours to trade at 63 cents in Asian morning hours Tuesday, following a bizarre sell-off that saw it lose 90% within an hour late Sunday. A recovery plan is in the works, its CEO said in an interview following the plunge, though market watchers remain sceptical of any promises.

Elsewhere, Story Protocol's IP dumped 20%, then jumped more than 30% within hours late Monday, with early fears of an OM-like selloff among crypto circles.

Meanwhile, VeThor's VTHO zoomed 37% as UFC CEO Dana White joined the protocol as a strategic advisor, boosting hopes for mainstream adoption — and recognition — of the RWA-focused token.

Excited to welcome Dana White, the highly successful CEO of Ultimate Fighting Championship (UFC), to the VeChain family as a Strategic Advisor! ?

His deep understanding of building a global brand from the ground up will be invaluable to Story Protocol as we expand the possibilities of Web3.

— Story Protocol (@StoryProtocol) October 23, 2023

A post shared by HashKey Capital (@hashkeycapital)

Singapore-based QCP Capital said in a Telegram broadcast that BTC risk reversals remained skewed in favour of puts until June, suggesting that markets are still mildly cautious in the near term.

"That said, the tone further out is turning more constructive. On Saturday, we observed aggressive buying of 800x BTC-27MAR26-100k-C. BTC continues to consolidate within the $80k-$90k range and could continue trading sideways, adopting a 'wait and see' approach to the tariff situation," QCP said.

However, the $100,000 call option has become the most favored bet among traders in the mid-term, as CoinDesk noted Monday, with a notional open interest of nearly $1.2 billion.

Some traders say that sell-offs related to tariffs may be well behind and hope for improved sentiment in the days ahead.

"The current upward trend was further bolstered by the Federal Reserve's assurance that it stands ready to intervene and stabilize markets in the event of a crisis triggered by the tariffs," Jupiter Zheng, partner of liquid fund and research at HashKey Capital, told CoinDesk.

"As the US engages in trade negotiations with other nations, we remain hopeful that the most turbulent period may be behind us," Zheng ended.