When the stock market markets broke up on the second day of April 4, the chairman of the US Federal Reserve Jerome Powell he said that “mutual tariffs of Trump administration” can significantly affect the economy, potentially leading to “higher inflation and slower growth”.

Turning to society at the conference on April 4, Powell maintained a cautious approach and noticed that the tariffs could escalate inflation “in the coming quarters”, complicating 2% Fed inflation, just a few months after reduction of the rate indicated a cushioned landing. Powell said

“Although tariffs are very likely that at least a temporary increase in inflation, it is also possible that the effects may be more durable.”

Just before Powell’s speech, US President Donald Trump called Chairman of the FED, to “lower interest rates” in a post about social truth, taking a stab at Powell for “always late”.

Currently, the Fed is in the face of a critical choice: interrupting interest rate reduction during the year or quickly responds to reduced rates if the economy shows signs of weakness. While the Fed official noticed that the economy was in the right place, Powell said it was so

“Too early to say what the right monetary policy path will be”

On April 4, the unemployment rate also increased to 4.2% in March from 4.1% in February, but on the contrary, the March payroll lists added 228,000 jobs, which exceeded expectations and strengthened the economic strength. In March, the consumer price indicator (CPI) also increased by 2.8% year -on -year, and the March data was due on April 10.

The above numbers emphasize a robust labor market, but tormenting inflation concerns, thus consistent with Powell’s warning about the potential tariff effects.

Related: Bitcoin Bulls defend support in the amount of USD 80,000 as “World War 3 of Trade Wars” crushes American stocks

Powell’s caution against higher inflation and a slowdown in economic growth occurred the same day on which dot fell 2200 and 10% of the two -day loss from the S&P 500. Resources on markets based on “guru” announced This,

“$ 3.25 trial erased from the American stock market today. $ 5.4 billion was added to the cryptographic market.”

Bitcoin to consider further variability

Most investors predict that in the low period Bitcoin (BTC) can see an escalate in variability. Powell’s comments on tariffs that drive “higher inflation” and possibly “higher unemployment” can download established market investors, which prompted BTC.

In fact, the analysts pointed out that the price of BTC seems to “separate” from the recent slowdown in the action. Although Bitcoin reached the 9-day highest level of April 2, before President Trump released his “mutual tariffs” on the “day of liberation”, the price sold rapidly after revealing the tariffs in the pressure of the White House.

Since then, Bitcoin has remained constant above USD 82,000, and because American stock markets fell on April 4, BTC increased to USD 84,720, reflecting the price campaign, which is unusual for the standard.

An independent market analyst Cory Bates has published the above table and he saidIN

“[…]Bitcoin separates in our eyes. ”

Because China has fainted with 34% tariffs for American goods, and Trump teases Powell to reduce interest rates, market volatility can escalate the price of bitcoins as protection against uncertainty.

During the US trade war in 2018, the price of Bitcoins did not record any growth throughout the year. However, she experienced a worthy variability and price escalate by 15%, when the trade war increased in mid -2018, and the United States applied tariffs to Chinese goods in July, followed by retaliation from China.

Related: Bitcoin sentiment drops to low in 2023, but “risk” may appear

This article does not contain investment advice or recommendations. Each investment and commercial movement involves risk, and readers should conduct their own research when making decisions.