Bitcoin and crypto prices have moved sharply lower following a stock market decline, with concerns over Bitcoin’s volatile direction suggesting it is on the verge of a bigger crash.
The crypto giant has fallen below $80,000, dragging the broader token market down $1 trillion in value in just a month. However, markets are still hoping Donald Trump’s tone will turn things around.
BlackRock Chief Executive Larry Fink has warned that Trump’s inflation-fueled trade policies could wipe out hopes of a Fed rate cut in 2025.
He said that if the market turns nationalistic, it could lead to higher inflation, which is a negative.
Meanwhile, Goldman Sachs economists have raised their odds of a recession in the next 12 months from 15% to 20%, citing Trump’s economic policies as the main risk.
Yardeni Research economists have also raised the odds of a recession from 20% to 35%.
Last week, Fed Chairman Jerome Powell said his officials were in no rush to cut rates with the labor market still strong and inflation on a rolling path toward its 2% goal.
