Home NewsStory Powell’s Tariff Warning Sends Bitcoin Crashing

Powell’s Tariff Warning Sends Bitcoin Crashing

by Ouess

Federal Reserve Chair Jerome Powell sent shockwaves through markets Wednesday, warning that Trump’s tariffs are just starting to fuel inflation. The hawkish comments triggered a Bitcoin price drop from $117,500 to under $116,000 before a partial recovery.

Key Takeaways From Powell’s Speech

🔴 “Early days” of tariff inflation – Consumer prices already rising
🔴 September rate cut unlikely – Fed wants “more clarity” first
🔴 Data-dependent approach – PCE report tomorrow critical

Market Reactions

📉 Bitcoin dipped 1.3% before rebounding to $117K
📉 Rate cut odds fell (Sept chance dropped from 64% to 47%)
📊 All eyes on PCE data (Fed’s preferred inflation gauge)

BTC Price Source : TradingView

Why This Matters for Crypto

  • Higher inflation → longer high rates → risk asset pressure
  • Fed uncertainty → market volatility spikes
  • $117K BTC key level – Break below could test $112K support

Powell’s tone marked a clear hawkish shift, emphasizing:

“We have to think of this as still being in the quite early days… It will be difficult to determine if the data will be clear by September.”

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