“I think if we all are becoming a little more nationalistic—and I’m not saying that’s a bad thing, you know, it does resonate with me—that it’s going to have elevated inflation,” BlackRock’s Larry Fink told CeraWeek conference attendees, it was reported by Reuters.

Meanwhile, Goldman Sachs economists have upped their odds of a recession over the next 12 months from 15% to 20%, pointing to Trump’s economic policies as the “key risk.” Yardeni Research economists have also raised their recession odds, increasing them from 20% to 35% due to “Trump 2.0’s head-spinning barrage of executives orders, firings, and tariffs.”

Last week, Federal Reserve chair Jerome Powell said the Fed is in no rush to cut rates, with the labor market still strong and inflation on a bumpy path toward its 2% goal.

The CME FedWatch Tool shows the market is heavily betting the Fed leaves rates on hold at its March meeting next week but is split over whether rates will be cut in May.

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On Wednesday, the latest U.S. inflation data in the form of the consumer price index (CPI) will drop, with consumer prices expected to have ticked up in February, according to Bloomberg, highlighting the Fed’s slow progress on battling inflation and potentially raising the specter of stagflation—characterized by an economic slowdown coupled with spiraling price rises.

“This market downturn is largely driven by broader economic concerns, including fears of a U.S. recession and persistent inflation,” Sean Dawson, head of research at decentralized options trading platform Derive.xyz, said in emailed comments.

“The market is facing significant challenges as the macroeconomic environment worsens, and crypto assets are no exception. With bearish sentiment building, traders are turning to downside hedging strategies, especially as volatility surges across both traditional and crypto markets. The coming weeks will be critical for assessing how the broader economic situation impacts digital asset prices and trading behavior.”