- Ray Dalio warns that Trump’s tariff policies could lead to economic disruption worse than a recession.
- Bitcoin recovered to $85,000 after the White House exempted smartphones and computers from tariffs.
- Digital asset investment products experienced $795 million in outflows last week, marking three consecutive weeks of decline.
Ray Dalio, billionaire founder of Bridgewater Associates and Bitcoin enthusiast, has issued a stark warning that the United States could face “something worse than a recession” due to President Trump’s aggressive tariff policies. Speaking on NBC’s “Meet the Press,” Dalio, who correctly predicted the 2008 financial crisis, expressed concern that these policies are causing a “breaking down of the monetary order.”
The hedge fund manager cautioned that improper handling of the president’s economic approach could trigger “an international conflict in a way that is highly disruptive to the world economy.” Dalio emphasized the severity of current developments by noting, “This sort of breakdown occurs only about once in a lifetime.”
Bitcoin Markets React to Tariff News
Bitcoin’s price has been fluctuating in response to President Trump’s tariff announcements, particularly those targeting Chinese imports. However, BTC recently climbed back to $85,000 following the White House’s confirmation that smartphones and computers—including those manufactured in China—would be exempt from these tariffs.
Dan Ives, an analyst at Wedbush, described this exemption as a “huge victory for big tech and tech investors” that would positively impact Monday’s stock market performance. Despite this recovery, sentiment among traders remains mixed, with Myriad Markets showing just a 61% probability that Bitcoin will remain above $85,000 by Wednesday’s end.
Investment Trends Show Concern
A new report from CoinShares reveals that digital asset investment products have recorded their third consecutive week of declines, with substantial outflows totaling $795 million last week alone.
Meanwhile, Mike McGlone, Bloomberg Intelligence’s senior commodity strategist, pointed out the stark contrast between Bitcoin’s year-to-date losses of 9% and Gold‘s impressive 25% rally during the same period. In a note reviewed by Decrypt, McGlone suggested, “Bitcoin and its millions of crypto dependents may require a rising U.S. stock market for buoyancy. The Bitcoin/gold ratio could be shifting to a more profound track—simple reversion.”
This divergence between traditional safe-haven assets like gold and cryptocurrency markets highlights growing investor uncertainty amid geopolitical tensions and shifting economic policies. As tariff implementations continue to develop, market analysts remain watchful of both immediate price reactions and longer-term trends in digital asset investments.
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