{"id":126501,"date":"2025-04-04T22:17:02","date_gmt":"2025-04-04T22:17:02","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=126501"},"modified":"2025-04-04T22:17:02","modified_gmt":"2025-04-04T22:17:02","slug":"bitcoin-decouples-stocks-lose-3-5t-amid-trump-tariff-war-and-fed-warning-of-higher-inflation","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=126501","title":{"rendered":"Bitcoin \u2018decouples,\u2019 stocks lose $3.5T amid Trump tariff war and Fed warning of \u2018higher inflation\u2019"},"content":{"rendered":"

Source: Cointelegraph.com NewsAs stock markets crumbled for a second day on April 4, US Federal Reserve Chair Jerome Powell said that the Trump administration\u2019s \u201creciprocal tariffs\u201d could significantly affect the economy, potentially leading to “higher inflation and slower growth.”
\nAddressing the public at a conference on April 4, Powell maintained a cautious approach and noted that tariffs could spike inflation \u201cin the coming quarters,\u201d complicating the Fed\u2019s 2% inflation target, just months after rate cuts indicated a soft landing. Powell said,
\n\u201cWhile tariffs are highly likely to generate at least a temporary rise in inflation, it is also possible that the effects could be more persistent.\u201d\u00a0
\nMoments before Powell\u2019s speech, US President Donald Trump called out the Fed chair to \u201cCUT INTEREST RATES\u201d in a post on the Truth Social, taking a jab at Powell for being \u201calways late.\u201d
\nSource: Truth SocialCurrently, the Fed faces a critical choice: pause interest rate cuts throughout the year or respond quickly with rate reductions if the economy shows signs of weakening. While the Fed official noted that the economy is in a good place, Powell said that it was,
\n\u201cToo soon to say what will be the appropriate path for monetary policy,\u201d
\nOn April 4, the unemployment rate also increased to 4.2% in March from 4.1% in February, but on the contrary, March\u2019s Non-Farm Payrolls added 228,000 jobs, which exceeded expectations and reinforced economic strength. In March, the Consumer Price Index (CPI) also rose by 2.8% year over year, with March data due on April 10.
\nThe above figures highlight a strong labor market but nagging inflation concerns, thus aligning with Powell\u2019s warning about potential tariff impacts.
\nRelated: Bitcoin bulls defend $80K support as \u2018World War 3 of trade wars\u2019 crushes US stocks
\nPowell\u2019s caution on higher inflation and slowing economic growth came on the same day that the DOW dropped 2,200 and a 10% two-day loss from the S&P 500. X-based markets resource \u2018Watcher Guru\u2019 announced that,
\n\u201c$3.25 trillion wiped out from the US stock market today. $5.4 billion was added to the crypto market.\u201d
\nStock market losses hit $3.5 trillion. Source: Watcher Guru \/ X Bitcoin to entertain further volatility
\nMost investors anticipate that in the short term, Bitcoin (BTC) could see a surge in volatility. Powell\u2019s remarks about tariffs driving \u201chigher inflation\u201d and possibly \u201chigher unemployment\u201d could rattle traditional market investors, prompting a pivot to BTC.
\nIn fact, analysts have pointed out that BTC price appears to be \u201cdecoupling\u201d from stocks recent downturn. Although Bitcoin hit a 9-day high on April 2 before President Trump rolled out his \u201creciprocal tariffs\u201d on \u201cLiberation Day,\u201d the price sold off sharply once the tariffs were revealed at a White House presser.
\nSince then, Bitcoin has held steady above the $82,000 level, and as US equities markets collapsed on April 4, BTC rallied to $84,720, reflecting price action, which is uncharacteristic of the norm.
\nBTC\/USD price versus major stock indices. Source: X \/ Cory BatesIndependent market analyst Cory Bates posted the above chart and said,
\n\u201cBitcoin is decoupling right before our eyes.\u201d
\nWith China retaliating with 34% tariffs on US goods and Trump pressuring Powell to cut interest rates, market volatility could push Bitcoin\u2019s price upward as a hedge against uncertainty.
\nDuring the 2018 U.S.-China trade war, Bitcoin price didn\u2019t see any increase across the entire year. However, it experienced notable volatility and a 15% price rise when the trade war escalated in mid-2018, with the US imposing tariffs on Chinese goods in July, followed by retaliatory measures from China.
\nRelated: Bitcoin sentiment falls to 2023 low, but \u2018risk on\u2019 environment may emerge to spark BTC price rally
\nThis article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"

Source: Cointelegraph.com NewsAs stock markets crumbled for a second day on April 4, US Federal Reserve Chair Jerome Powell said that the Trump administration\u2019s \u201creciprocal tariffs\u201d could significantly affect the… <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/126501"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=126501"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/126501\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=126501"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=126501"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=126501"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}