Bitcoin Plummets Below $116K Following Powell's Hawkish Fed Remarks

Bitcoin Tumbles as Powell Holds Firm on Inflation Concerns

In a recent press conference, Federal Reserve Chairman Jerome Powell reiterated his stance on the potential inflationary risks posed by current tariff policies, causing a swift reaction across financial markets. Bitcoin (BTC) experienced a sharp decline, dropping nearly 2% to $115,800, while major U.S. stock indices also turned negative.

Market Reaction to Fed's Stance

Powell emphasized that "increased tariffs are pushing up prices," hinting at sustained higher interest rates to combat inflation. This hawkish tone led to a broader market sell-off, with altcoins like Ether (ETH), Solana (SOL), and XRP each falling nearly 4%.

Fed's Decision and Dissent

The Fed maintained its benchmark rate at 4.25%-4.5%, aligning with expectations. However, two members, Governors Waller and Bowman, advocated for a 25 basis point cut, highlighting internal divisions. Despite political pressure, Powell showed no signs of easing policy soon.

Fed Chair Jerome Powell's remarks sent shockwaves through crypto and traditional markets.