Bitcoin’s “departure” stocks lost 3.5 tons amid Trump’s tariff war and warning “higher inflation.”

As the stock market collapsed the day after April 4, Fed Chairman Jerome Powell said the Trump administration’s “reciprocity tariffs” could seriously affect the economy, which could lead to “inflation and slower growth.”

Powell addressed the public at a meeting on April 4 and kept a cautious approach, noting that tariffs could soar “in the coming quarters”, complicating the Fed’s 2% inflation target, only after a few months of slowing down the pace. Powell said,

“While tariffs are most likely to generate at least a temporary rise in inflation, this impact may also be more durable.”

A moment before Powell’s speech, U.S. President Donald Trump called on the Fed chairman to “reduce interest rates” with a jab that is “always late”.

Currently, the Fed faces a key option: If the economy shows signs of weakness, it will suspend interest rates or respond quickly to lower interest rates throughout the year. Federal Reserve officials point out that the economy is in a good place, Powell says it is

“It is too early to say what is the appropriate approach to monetary policy,”

On April 4, the unemployment rate in March also rose to 4.2% from 4.1% in February, but instead, the non-agricultural payroll increased 228,000 jobs in March, which exceeded expectations and strengthened the economy. In March, the Consumer Price Index (CPI) also grew 2.8% year-on-year, with March 10 on April 10.

The data above highlights a strong labor market, but inflation concerns, and thus aligns with Powell’s warnings about potential tariff impacts.

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Powell’s caution about higher inflation and slowing growth was down 2,200 times on the same day, down 10% from the S&P 500, respectively. The X-based market resource “Watcher Guru” announced that this is the case.

“The $32.5 trillion was removed from the U.S. stock market today. The cryptocurrency market increased by $5.4 billion.”

Bitcoin Entertainment further fluctuates

Most investors expect Bitcoin (BTC) could lead to a surge in volatility in the short term. Powell’s comments on tariffs that push “high inflation” and “higher unemployment” could harass traditional market investors, prompting the BTC hub.

In fact, analysts pointed out that the price of BTC seems to be “off the line” with stocks that have recently been downturned. Although Bitcoin reached its nine-day high on April 2, then President Trump launched his “reciprocity tariffs” on “Liberation Day”, the price was sold sharply once the White House news agency revealed the tariffs.

Since then, Bitcoin has been steady above the $82,000 level, and with U.S. stock sales on April 4, BTC rose to $84,720, reflecting price action on price, which is a non-characteristic of the norm.

Independent market analyst Cory Bates released the above picture and said

“(…) Bitcoin is canceling before our eyes.”

Market volatility could push Bitcoin’s price to uncertainty as China retaliates against tariffs on U.S. goods and puts pressure on Powell to lower interest rates.

During the 2018 U.S.-China trade war, the price of Bitcoin did not increase throughout the year. But when the trade war escalated in mid-2018, it experienced significant volatility, with prices rising 15%, and the U.S. imposed tariffs on Chinese goods in July, followed by Chinese retaliation measures.

Related: Bitcoin sentiment falls to 2023 lows, but “risk to the environment” may arise to inspire BTC price rally

This article does not contain investment advice or advice. Every investment and trading move involves risks and readers should conduct their own research when making decisions.