The Discopes of Bitcoin, “the actions lose $ 3.5 t in the midst of the Trump pricing war and the Fed Warning of” higher inflation “

While the stock markets collapsed for a second day on April 4, the president of the American federal reserve Jerome Powell said that the “reciprocal prices” of the Trump administration could considerably affect the economy, which potentially leads to “higher inflation and slower growth”.

Addressing the public at a conference on April 4, Powell maintained a cautious approach and noted that the prices could increase inflation “in the next quarters”, complicating the inflation objective of 2% of the Fed, just a few months after the rate drops indicated a mild landing. Powell said,

“Although prices are very likely to generate at least a temporary increase in inflation, it is also possible that the effects can be more persistent.”

A few moments before Powell’s speech, US President Donald Trump called on the president of the Fed to “reduce interest rates” in an article on social truth, taking a blow to Powell to be “still late”.

Currently, the Fed is faced with a critical choice: an interest rate break throughout the year or react quickly with rate reductions if the economy shows signs of weakening. While the Fed official noted that the economy was in a good place, Powell said it was,

“Too early to say what the appropriate path will be for monetary policy”, “

On April 4, the unemployment rate also increased to 4.2% in March, against 4.1% in February, but on the contrary, the non -agricultural payroll in March added 228,000 jobs, which exceeded expectations and strengthened economic force. In March, the consumer price index (IPC) also increased by 2.8% from one year to the next, with data from March scheduled for April 10.

The above figures highlight a strong labor market, but the concerns of groveling inflation, thus aligning with the warning of Powell concerning potential pricing impacts.

Related: Bitcoin Bulls defends $ 80,000 in support while “the Second World War of Commercial Wars” crushes American actions

Powell’s prudence on higher inflation and the slowdown in economic growth occurred on the same day as the DOW dropped 2,200 and a loss of 10% of two days compared to the S&P 500. The resources of the markets based on X ‘Watcher Guru’ ‘announced that, announced that,

“3.25 billions of dollars destroyed from the US stock market today. $ 5.4 billion was added to the cryptography market. ”

Bitcoin to entertain additional volatility

Most investors predict that in the short term, Bitcoin (BTC) could see an increase in volatility. Powell’s remarks on prices stimulating “higher inflation” and possibly “higher unemployment” could stretch traditional market investors, causing a BTC pivot.

In fact, analysts stressed that the BTC prize seems to “decouple” recent recent actions. Although Bitcoin reached a 9 -day summit on April 2 before President Trump launched his “reciprocal prices” on the “Liberation Day”, the price has sold greatly once the prices were revealed in a White House pressure.

Since then, Bitcoin has maintained above the level of $ 82,000, and as the American equity markets collapsed on April 4, the BTC has joined $ 84,720, reflecting prices, which is not characteristic of the standard.

The market independent market analyst, Cory Bates displayed the graph above and said,

“(…) Bitcoin hates himself just before our eyes.

China retaliated with 34% of prices on American products and Trump using Powell to reduce interest rates, market volatility could push the price of Bitcoin upwards like coverage against uncertainty.

During the 2018 American-Chinese-Chinoise trade war, Bitcoin Price saw no increase of all year round. However, it experienced notable volatility and an increase in prices of 15% when the trade war intensified in mid-2018, the United States imposing prices on Chinese products in July, followed by reprisals from China.

Related: the feeling of bitcoin falls at 2023 low, but the “risk on” can emerge to trigger a BTC price rally

This article does not contain investment advice or recommendations. Each investment and negotiation movement involves risks and readers should conduct their own research when they make a decision.