Are plunging asset prices actually forecasting an economic downturn?

According to economic research, recession signals in modern developed economies don't show up that often. And when they do appear? It's rarely good timing. "In modern US economy, it's pretty rare, and it's usually at a really bad time," explains an economist from a leading research firm.

This is worth noting for anyone tracking market cycles. When traditional recession indicators flash red—especially price compressions across multiple asset classes—history suggests we're not looking at random noise. The rarity of these signals makes them even more significant. They tend to cluster around periods when financial stress is already mounting, creating a double squeeze for investors.

For crypto participants watching macroeconomic winds, these patterns offer a useful reality check on broader economic health beyond just blockchain metrics.