A majority of Polymarket bettors, with over 76% expecting the price to fall, are betting on Bitcoin’s price drop in 2025, highlighting fears in the crypto space. The current market value is $78,450.29, while the total crypto market cap has decreased by 5.97% to $2.47 trillion in 24 hours.
The uncertainty stems from President Donald Trump’s threat to impose a 50% tariff on China, escalating a longstanding trade war between the two countries. The White House warned that negotiations could break unless Beijing rescinds its retaliatory tariffs of 34%.
Wall Street is reacting with different opinions. BlackRock CEO Larry Fink predicted another 20% drop in equity markets if the US-China tariff war intensifies, calling it a buying opportunity but also warning of further losses.
Economist Peter Schiff argues that markets are underpricing recession risk and that even a 50% drop won’t be enough to mitigate the crisis. However, he believes Bitcoin will not solve this market problem. Legendary trader Peter Brandt, on the other hand, highlighted Bitcoin’s technicals, stating that $54,000 is a crucial retracement level and suggesting further downside could occur if broader economic pressures remain or speculators unwind.
The crypto community sees Bitcoin’s origins during a financial crisis as relevant to its role as a hedge against crises. Bitwise CEO Hunter Horsley agreed, indicating that Bitcoin’s role may soon be tested again.
Source: https://finance.yahoo.com/news/legendary-trader-two-word-blunt-174255307.html