US Recession 2025: Can Bitcoin Survive America’s Longest Shutdown

Bitcoin and the US Recession 2025: Collapse or Crypto Comeback?

Have you ever wondered how a deepening US Recession 2025 could impact Bitcoin’s fate? As the U.S. government shutdown stretches into its 37th day, markets are trembling. Investors fear a “manufactured collapse” that echoes the financial chaos of America 2008, Russia 1991, and Poland 1989—each time, wealth vanished overnight, leaving only opportunity for a few and devastation for many.

Debt, Decline, and the U.S. Recession Probability 2025

History has warned that in economic downturns, when empires are drowned in debt, a self-reinforcing vortex follows: borrowing collapses, money printing soars, inflation spikes, and living standards plummet. The forecast for the recession in the U.S. in 2026 is grim, as inflation really bites and productivity sags amidst rising political extremism.

Source: X

The current update on the U.S. government shutdown is grim, with federal workers remaining unpaid, delays at airports throughout the country, and crumbling confidence in Washington's fiscal leadership. Analysts also fear that the crisis may push America toward a debt spiral, echoing in classic patterns of collapse as populism rises when currencies weaken.

Bitcoin News Today: Liquidations Loom, Rebound in Sight?

Amid this turmoil, Bitcoin BTC is emulating the panic in conventional markets. At publishing time, Bitcoin price today hovered at 102,276.38, down 0.85% intraday with a market capitalization of $2.04 trillion and daily volume of $69.31 billion. Over the week, BTC fell 7%, while its loss over the month approached nearly 16%—its sharpest monthly decline since early 2023.

Source: CoinMarketCap

Analysts also warn that HODLers who have pledged BTC as collateral for loans risk forced liquidations as prices slide. And when collateralized BTC is liquidated anywhere near market lows, it often fuels further declines—a kind of vicious loop similar to the margin collapses in 2008. “Many won’t even realize enough cash to pay tax liabilities,” says Peter Schiff.

Source: X

There's still a silver lining, though. According to on-chain expert Ali Martinez, whales purchased more than 10,000 BTC in the past 24 hours. Whenever traders' realized losses reached -12%, its price always bounced back. At -11% now, BTC is within the rebound threshold, indicating possible reversal.

Bitcoin Price Prediction: Rebound or Breakdown Ahead?

Technically, the price prediction models show BTC rebounding from the key support zone at $98,213. 

Source: TradingView

The RSI at 36.67 shows oversold conditions and therefore likely space for a short-term rebound. If it sustains above $98K, it could target resistance between $112,000–$124,276. A decisive breakout beyond $124K may propel BTC toward $135,000 in the coming weeks.

Failure to hold the range of $100K–$98K could put it in the path of a deeper correction, with the next key support being close to $75,000. The MACD is currently negative at -809.04, showing bearish momentum; however, a bullish crossover around the current levels could confirm a trend reversal toward mid-$110K levels.

Conclusion 

As the deepening of the US Recession 2025 worsens and the U.S. shutdown crisis drags further along, markets find themselves at a crossroads. Bitcoin could either be crushed under forced liquidations or rebound as a safe-haven hedge amid collapsing confidence in fiat systems. History has shown that every collapse births new winners—perhaps once again, those holding Bitcoin through the storm will emerge stronger.

Disclaimer: This article is for informational purposes only, not to be considered as financial advice. Do your own research before investing.