Bitcoin and crypto prices have moved sharply lower, following stock markets, as fears swirl the bitcoin price could be teetering on the verge of a major crash.
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The bitcoin price has dropped under $80,000 per bitcoin, dragging down the wider crypto market that’s now erased $1 trillion of value in just a month (even as bullish traders bet on a U.S. president Donald Trump “game-changer”).
Now, as Elon Musk issues a surprise crypto price warning, the chief executive of the world’s largest asset manager BlackRock has warned Trump’s trade policies will stoke inflation—pouring cold water on hopes the Federal Reserve will cut interest rates through 2025.
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BlackRock chief executive Larry Fink has warned inflation could make a come back in 2025, … [+]
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“I think if we all are becoming a little more nationalistic—and I’m not saying that’s a bad thing, you know, it does resonate with me—that it’s going to have elevated inflation,” BlackRock’s Larry Fink told CeraWeek conference attendees, it was reported by Reuters.
Meanwhile, Goldman Sachs economists have upped their odds of a recession over the next 12 months from 15% to 20%, pointing to Trump’s economic policies as the “key risk.” Yardeni Research economists have also raised their recession odds, increasing them from 20% to 35% due to “Trump 2.0’s head-spinning barrage of executives orders, firings, and tariffs.”
Last week, Federal Reserve chair Jerome Powell said the Fed is in no rush to cut rates, with the labor market still strong and inflation on a bumpy path toward its 2% goal.
The CME FedWatch Tool shows the market is heavily betting the Fed leaves rates on hold at its March meeting next week but is split over whether rates will be cut in May.
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The bitcoin price has fallen sharply from its all-time highs, sparking fears of a looming bitcoin … [+]
Forbes Digital Assets
On Wednesday, the latest U.S. inflation data in the form of the consumer price index (CPI) will drop, with consumer prices expected to have ticked up in February, according to Bloomberg, highlighting the Fed’s slow progress on battling inflation and potentially raising the specter of stagflation—characterized by an economic slowdown coupled with spiraling price rises.
“This market downturn is largely driven by broader economic concerns, including fears of a U.S. recession and persistent inflation,” Sean Dawson, head of research at decentralized options trading platform Derive.xyz, said in emailed comments.
“The market is facing significant challenges as the macroeconomic environment worsens, and crypto assets are no exception. With bearish sentiment building, traders are turning to downside hedging strategies, especially as volatility surges across both traditional and crypto markets. The coming weeks will be critical for assessing how the broader economic situation impacts digital asset prices and trading behavior.”
