▫️$BTC and the broader cryptocurrency market have dropped significantly, with Bitcoin falling below $80,000 and erasing $1 trillion in value over the past month.
▫️This sharp decline reflects wider market trends, as economic uncertainty grows, and fears of a potential crash increase.
▫️Elon Musk’s surprise warning about crypto prices and #BlackRock CEO Larry Fink’s comments on rising nationalism further heighten investor concerns. Fink suggested that nationalism could exacerbate inflation by disrupting global supply chains, which could lead to higher costs.
▫️In addition, #GoldManSachs economists have raised their odds of a recession over the next 12 months from 15% to 20%, citing $TRUMP ’s economic policies as a key risk.
▫️Yardeni Research has also increased recession odds, from 20% to 35%, highlighting the disruption caused by potential “Trump 2.0” policies, including tariffs and executive orders.
▫️Federal Reserve Chair Jerome #PowellSpeech has indicated that the Fed is in no rush to cut rates, given the strong labor market, although inflation remains a concern.
The CME FedWatch Tool shows a split view on whether the Fed will cut rates in May. With rising inflation and uncertainty around the Fed’s next steps, both the crypto and traditional markets are under pressure, leaving investors uncertain about the future direction of digital assets.
