BlackRock CEO Warns of Economic Risks from Trump Policies and Bitcoin Volatility

Bitcoin’s price volatility has been intensified by the Trump administration’s latest tariff wave, with BlackRock CEO Larry Fink warning that inflation may persist amid escalating trade tensions.

Bitcoin recently plunged to a four-month low, dropping below $77,000 before recovering to over $82,000. This fluctuation highlights the cryptocurrency’s sensitivity to macroeconomic uncertainties, amplified by the renewed trade confrontation.

“As we become more nationalistic, it will likely elevate inflation,” Larry Fink remarked at a Houston conference this week. “I’m not saying that’s entirely negativeit resonates with me.”

The crypto community responded critically. “This isn’t just about inflation jitters,” said Mike Cahill, CEO of Douro Labs. “The $1 trillion market decline reflects a stark reaction to political instability and global tensions stemming from Trump’s tariffs. While Fink discusses CPI models, investors are selling because the macro environment feels like an unpredictable rollercoaster.”

Ben Brauser, author of Crypto Moments, added, “The ongoing tariff war creates global market uncertainty, with every country potentially facing economic disruption. We’re witnessing a widespread de-risking strategy.”

Wall Street analysts are increasingly warning about potential economic downturns. Morgan Stanley predicts the S&P 500 could plunge further if trade tensions escalate. Goldman Sachs has raised its recession forecast to 20%, citing tariffs as a key risk factor and downgrading its 2025 GDP growth estimate to 1.7%.

“Our trade policy assumptions have become considerably more adverse,” explained Goldman Sachs chief economist Jan Hatzius.

Yardeni Research echoes these concerns, noting that “Trump 2.0’s executive actions have rattled investors and intensified inflation fears.” The firm has consequently raised its recession probability to 35%.

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