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Crypto Markets Struggle as Inflation, Tariffs, and Rate Policy Create Uncertainty

Bitcoin falls below $80,000, erasing $1 trillion in market value, as fears of inflation and recession weigh on investor sentiment.

Souvenir tokens representing cryptocurrency Bitcoin plunge into water in this illustration taken May 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
Calm waters. (Credit: Atte Grönlund, Unsplash)
A person balances stacks of coins on primitive balance.
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Overview

  • Bitcoin and the broader crypto market have seen steep declines, with Bitcoin dropping under $80,000 and the market losing $1 trillion in value over the past month.
  • BlackRock CEO Larry Fink warns that U.S. President Donald Trump's tariff policies could drive inflation higher, complicating Federal Reserve decisions on rate cuts.
  • February's U.S. Consumer Price Index (CPI) showed inflation slowing to 2.8%, below expectations, but markets remain concerned about the impact of tariffs and recession risks.
  • The inaugural White House Crypto Summit failed to reassure investors, contributing to bearish sentiment and market volatility.
  • Corporate Bitcoin holders like Strategy and Riot Platforms are facing significant stock declines as Bitcoin struggles, with recession fears and inflation risks creating further headwinds.