Bitcoin Drops Nearly 2% to $115,800 After Powell’s Comments
U.S. Federal Reserve Chairman Jerome Powell indicated that rising tariffs could lead to inflation, stating that "increased tariffs are pushing up prices" and that inflation expectations have risen. He confirmed the Fed's decision to maintain interest rates steady at 4.25%-4.5%. This stance triggered a negative market reaction:
- Bitcoin price dropped nearly 2% to $115,800
- Major U.S. stock indices shifted from 0.5% gains to 0.5% losses
- Ether, Solana, and XRP fell nearly 4%
Despite pressure from President Trump and two Fed members advocating for a rate cut, Powell showed no intention to change the current policy.