- A JPMorgan survey found that 51% of traders see inflation and tariffs as the biggest threats to markets this year.
- Trump’s new tariffs on China, Mexico, and Canada are already causing turbulence in stocks, commodities, and crypto.
- Market volatility is rising, with 41% of traders listing it as their top concern, up from 28% last year.
- Bitcoin and altcoins are reacting sharply to trade policy shifts, showing how global economics is now shaping the crypto market.
If you thought 2024 was unpredictable, buckle up for 2025. A new survey by JPMorgan Chase shows that inflation and tariffs will likely dominate financial markets this year.
The survey, which gathered responses from institutional traders, shows a huge shift in concerns. Last year, only 27% of traders worried about inflation. Now, that number has jumped to 51%.
The biggest reason? Trump’s aggressive trade policies.
Trump’s Tariffs Are Already Causing Chaos
Over the past week, President Donald Trump announced a 25% tariff on imports from Mexico and Canada, along with a 10% tariff on Chinese goods. Then, in a surprising move, he suspended some of them at the last minute.
I just spoke with President Claudia Sheinbaum of Mexico. It was a very friendly conversation wherein she agreed to immediately supply 10,000 Mexican Soldiers on the Border separating Mexico and the United States. These soldiers will be specifically designated to stop the flow of…
— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) February 3, 2025
“…We further agreed to immediately pause the anticipated tariffs for one month…” – Trump posted online.
That flip-flop sent shockwaves through the markets. Stocks, foreign currencies, commodities—and yes, even crypto—reacted immediately.
China didn’t sit back either. In response, they slapped a 10% tariff on U.S. crude oil and agricultural machinery, escalating the tension.
The JPMorgan survey highlights how this back-and-forth is fueling inflation, raising costs across industries. But surprisingly, fears of a recession have dropped. Only 7% of traders now worry about a major downturn—down from 18% last year.
Crypto Investors Are Feeling the Effects
For years, crypto markets operated independently of global politics. Not anymore.
JPMorgan’s survey found that unexpected political and economic shifts are now a major force in market swings. Unlike past years, where volatility was linked to scheduled events like elections or payroll reports, today’s markets are reacting to sudden headlines—especially those coming from Washington.
Even Bitcoin and altcoins are feeling the heat:
- When Trump delayed tariffs on Canada and Mexico, Bitcoin’s Coinbase premium index hit a new yearly high.
- The tariff pause boosted BTC prices, as investors saw it as a sign of possible economic stability.
- XRP also rebounded after the U.S. softened its stance on Mexican tariffs.
But when China retaliated, markets tanked again.
Back to 2200-2400 if China trade war is real https://t.co/DYcujirvYO
— Andrew Kang (@Rewkang) February 4, 2025
“Ethereum could drop back to $2,200–$2,400 if the China trade war escalates,” warned crypto analyst Andrew Kang.
Meanwhile, blockchain analytics firm Glassnode pointed out that macroeconomic factors are playing a much bigger role in Bitcoin’s price action than in past years. This means 2025 could be the first major crypto cycle shaped by global economic policy.
Volatility Is Now the #1 Concern for Traders
The JPMorgan survey also found that market volatility is the biggest worry for 2025:
- 41% of traders named it their top concern, up from 28% in 2024.
- Many say that Trump’s unpredictable policies are causing knee-jerk market reactions.
“The biggest change this year is how volatility keeps catching traders off guard. It’s no longer tied to scheduled events—it’s happening out of nowhere, triggered by sudden headlines about the administration’s plans,” said Eddie Wen, JPMorgan’s global head of digital markets, in a Reuters report.
With inflation rising and political uncertainty growing, crypto traders should expect more unexpected price swings.
