- Traders raise U.S. recession odds to over 60%.
- Increased tariffs have heightened economic concerns.
- Potential impact on global and crypto markets.

The likelihood of a U.S. recession in 2025 has increased to over 60% according to traders on Kalshi and Polymarket, following significant tariff hikes announced by the U.S. government.
Key Takeaways:
- Traders raise U.S. recession odds to over 60%.
- Increased tariffs have heightened economic concerns.
- Potential impact on global and crypto markets.
Kalshi and Polymarket’s increased recession predictions highlight potential economic challenges due to tariff hikes, affecting markets and traders’ strategies.
Reports highlight that Kalshi traders now see a 61% chance of recession in 2025, while Polymarket aligns closely at 60%. This follows new tariffs by former President Trump, sparking economic concerns. Trump’s tariffs aim for reduced interest rates amid economic tension.
An inverted yield curve and historical trends indicate slowing growth and possible prolonged recession. Cryptocurrency markets could face suppression under worsening conditions, adding complexity to investor decisions.
Trump’s strategy appears to create a fertile ground for interest rate cuts. — Anthony Pompliano, Investor, Commentator
Historical parallels to the Smoot-Hawley Tariff Act showcase potential for global slowdowns. Long-term implications include impacting global trade dynamics and financial market stability, with cryptomarkets reacting to broader economic shocks. Potential regulatory measures could be necessary to stabilize tensions.