The World Bank's latest economic outlook brings sobering news for 2026: global GDP growth is set to decelerate to 2.6%, down from the projected 2.7% in 2025. The culprit? Rising tariffs are squeezing trade flows across borders, creating friction in an already fragile recovery.

Here's what matters for those watching markets. Slower GDP growth typically signals weaker consumer spending, tighter corporate profits, and central banks potentially holding rates higher for longer. That's a cocktail that usually suppresses risk appetite—and crypto, as a higher-volatility asset class, tends to feel these headwinds first.

The tariff angle is particularly noteworthy. Trade barriers don't just slow economic activity; they ripple through supply chains, inflate input costs, and can trigger deflationary or stagflationary pressures depending on how they're applied. When trade stalls, capital seeking returns often rotates toward digital assets, but the initial shock typically comes with volatility spikes.

For crypto investors, the real question isn't whether growth is slowing—it's whether this prompts central banks to eventually pivot toward easing, which historically has been bullish for alternative assets. Watch the policy response over the next quarters; that's where the opportunity might hide.