Citigroup Warns Global Growth Will Drop Below 2% in H2 2025
Citigroup forecasts global economic growth will slow to under 2% in the second half of 2025, citing rising tariffs and trade tensions as key headwinds. The bank expects a rebound to about 2.5% growth in 2026 as tariff impacts peak. This global economic growth slowdown could intensify risk‐off sentiment across financial markets, including cryptocurrencies. Traders should watch for increased volatility in BTC and ETH as investor appetite for risk assets may wane. Key drivers include tariff policies, GDP growth estimates, and central bank reactions to weaker activity. Monitoring Citigroup’s outlook on tariffs and fiscal impact can help crypto traders adjust strategies amid shifting market conditions.
Bearish
Citigroup’s warning of sub-2% global economic growth in H2 2025 signals a maturing slowdown. Historically, similar forecasts have triggered risk-off moves, driving capital out of higher-beta assets such as cryptocurrencies. In the short term, traders may face heightened volatility as BTC and ETH respond to weaker global GDP projections and tariff uncertainties. Over the long term, although growth is expected to rebound in 2026, lingering trade tensions and fiscal headwinds could keep sentiment subdued. Crypto markets often lead in risk appetite shifts, so this macro outlook points to continued pressure before any sustained recovery.