Ray Dalio Issues Economic Warning as Bitcoin Holds Steady Amid Tariff Concerns

Bitcoin remained steady around the $85,000 mark on Monday, reflecting a cautious mood among investors amid increasing economic concerns. Financial expert Ray Dalio issued a stark warning, suggesting that the U.S. might be heading toward “something worse than a recession.” His outlook stems from growing risks tied to rising tariffs and strains on the global monetary system.

Economic Policy Pressure Mounts

Dalio’s comments coincide with heightened U.S.-China trade tensions. The White House is preparing new tariffs, though markets breathed a slight sigh of relief after it was revealed that devices like smartphones and computers—many made in China—would be exempt. This led to a modest rebound in the tech sector.

Market Reaction and Investor Sentiment

Despite maintaining the $85,000 level, Bitcoin’s performance is being closely watched as crypto markets continue to experience hesitance:

CoinShares data revealed $795 million in outflows from crypto investment products last week.
This marks the third consecutive week of negative flows into digital assets.

These figures indicate a potential loss of confidence or a wait-and-see attitude from institutional investors.

Comparative Performance

Year-to-date, Bitcoin has dropped by 9%, while gold—often viewed as a more stable hedge—has soared by 25%. This disparity suggests that traditional safe-haven assets are becoming more attractive amid global instability.

Outlook and Market Forecasts

Looking ahead, prediction markets are split. As of now, there’s a 61% probability that Bitcoin will remain above the $85,000 mark mid-week, hinting at persistent uncertainty in the face of volatile economic signals.

For more information, visit the full article on Decrypt.

Economic Policy Pressure Mounts

Market Reaction and Investor Sentiment

Comparative Performance

Outlook and Market Forecasts

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