Bitcoin’s price swings have intensified in response to escalating trade tensions, with BlackRock CEO Larry Fink warning that inflation could remain high due to former President Donald Trump’s latest round of tariffs. The cryptocurrency market continues to react to macroeconomic uncertainties, leading to significant fluctuations in Bitcoin’s value.
Recently, Bitcoin’s price fell to a four-month low, briefly dropping below $77,000 before recovering above $82,000, according to Kraken. This volatility underscores the market’s sensitivity to global economic conditions, which have been further unsettled by Trump’s revived trade policies.
“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,” said Larry Fink at a Houston conference this week. His comments highlight the growing concerns over economic protectionism and its potential long-term effects on inflation rates.
The cryptocurrency community has responded sharply to these developments. “The crypto market didn’t just bleed $1 trillion because of inflation jitters,” said Mike Cahill, CEO of Douro Labs, in an interview with TheStreet Crypto. “What we’re seeing right now is a full-blown reaction to political chaos and global tensions as a result of Trump’s tariffs. While Larry Fink talks about CPI models and nationalism, crypto investors are selling because the macro environment feels like a rollercoaster ride that isn’t going to stop any time soon.”
Adding to these concerns, financial analysts warn of broader economic risks. “The ongoing tariff war is creating uncertainty in global markets, as no country is safe from the potential of economic disruption. What we are seeing now is everyone de-risking to ride out these uncertain times,” said Ben Brauser, author of Crypto Moments: How Tech Visionaries Disrupted Global Finance.
Major Wall Street firms have also issued warnings. Morgan Stanley predicts that the S&P 500 could fall another 5% if trade tensions escalate further. Meanwhile, Goldman Sachs has increased its recession probability to 20%, citing tariffs and economic instability as key risks. The bank has also revised its 2025 GDP growth forecast downward to 1.7%, compared to last year’s 2.8% expansion. “The reason for the downgrade is that our trade policy assumptions have become considerably more adverse,” explained Jan Hatzius, chief economist at Goldman Sachs.
Yardeni Research has echoed these concerns, stating that “Trump 2.0’s head-spinning barrage of executive orders, firings, and tariffs have rattled investors, shaken confidence in the economy, and inflamed inflation fears. The pain of these decisive actions is being felt now.” Due to these factors, Yardeni has increased its estimated probability of a recession to 35%.
Reflecting the heightened anxiety in financial markets, CoinMarketCap’s Fear and Greed Index has plummeted to “extreme greed,” signaling strong sell pressure. “The potential consequences and risks for a recession have definitely increased as Larry Fink warns us, and the worldwide economic sentiment is one of fear,” said Bart de Bruijn, co-founder of EstateX, in a statement to TheStreet Crypto.
As uncertainty looms over the economy and the cryptocurrency market, investors are bracing for continued volatility, closely watching how trade policies and inflation fears will shape financial trends in the coming months.
By Alejandro Silva Ramírez, Crypto Analyst & Columnist