Bitcoin’s price fell sharply following Fed Chair Jerome Powell’s remarks on tariffs leading to potential stagflation. After touching $86,000, the cryptocurrency dipped to $83,700, losing 2.5%. U.S. stocks reacted similarly, with the Nasdaq falling 3.4%.
Bitcoin’s recent price dip caught the market’s eye on a humid Wednesday afternoon as a rather alarming message from Federal Reserve Chair Jerome Powell sent shockwaves through the trading floor. After a brief moment of upward movement, where some traders dared to dream Bitcoin might challenge the $86,000 mark, reality struck as Powell’s comments on tariffs sunk hopes and wallets alike.
The Fed Chair raised notable concerns regarding the toll of President Trump’s tariffs, indicating we might be in for a repeat of the stagflation crisis from the ’70s. “The level of the tariff increases announced so far is significantly larger than anticipated,” he stated, ominously foreshadowing the economic repercussions that could follow. As he laid out the grim possibilities, many investors found themselves bracing for impact.
As the market digested Powell’s caution regarding overpowering inflation intersecting with low growth, Bitcoin lost its footing, dropping nearly 2.5% in mere minutes following his address. The digital currency slipped to about $83,700, marking around a 1.5% decline over the previous 24 hours. Meanwhile, U.S. stocks also felt the heat, with the Nasdaq taking a significant hit, plummeting to a session low of 3.4%. Traders had hoped for a rebound, but the tides quickly turned.
The recent fall in Bitcoin’s price appears directly linked to Jerome Powell’s stark warnings about economic challenges linked to tariffs. As both Bitcoin and stock markets reacted swiftly to his forecasts of stagflation, the environment grows increasingly uncertain for investors. The digital asset’s slight recovery hopes were dashed Wednesday afternoon, while stocks plummeted, leaving many wondering what lies ahead in these tumultuous economic times.
Original Source: www.coindesk.com
