Crypto Warning Flags: Goldman, BlackRock, Citi Sound the Alarm on Bitcoin, Altcoins

Major financial institutions like Goldman Sachs, BlackRock, and Citi have released warning statements about recent possible threats to Bitcoin and altcoins amidst macroeconomic uncertainty. Goldman Sachs has raised its U.S. recession probability to 35% and expects Federal Reserve interest rate reductions that, if insufficient, would damage cryptocurrency markets. BlackRock CEO Larry Fink has cautioned against potential falls in equity markets and has raised alarm at the management of U.S. debt, the latter of which would be a potential beneficiary of Bitcoin in a speculative scenario.

Citi analysts mete out that although encouraging trends are seen in crypto, macroeconomic volatility is high and recommend caution against volatility in speculative trades. The prospect of a better regulatory environment is mentioned as a potential boon, and it is contingent upon political development, but it may not compensate for larger economic risks.

These warnings have resulted in Bitcoin and altcoin price declines, with Bitcoin recently going below $76,000 and altcoins like XRP and Ethereum recording stupendous losses as well. General bearishness could lower the trust of investors in cryptocurrencies, forcing the prices to decline unless some good news breaks out in the sector.