Federal Reserve Warning Threatens Bitcoin, Crypto Market Decline

Following Donald Trump's announcement of 'Liberation Day' tariffs, Bitcoin and several altcoins showed resilience, maintaining values between $80,000 and $90,000, despite an overall drop in the cryptocurrency market capitalization from $2.7 trillion to $2.6 trillion. The stock market, however, faced its worst week since 2020, with major indices slipping into correction territory. Federal Reserve Chairman Jerome Powell indicated that these tariffs could exacerbate inflation and hinder economic growth, expressing reluctance to cut interest rates amid persistent inflation. Analysts warn that a more hawkish Fed could negatively impact both cryptocurrency and stock prices, as these typically perform better when rates are lowered. Despite the bearish sentiment, some traders are speculating on a potential rally in Bitcoin prices if the US Dollar Index continues to weaken. Market experts suggest that a Fed interest rate cut could occur as recession fears grow, impacting the cryptocurrency landscape significantly.