‘Shock’ Fed Warning Risks that collapses Bitcoin, Altcoinic prices

After Donald Trump announced the release tariffs, Bitcoin and most Altcoina outlasted supplies.

Bitcoin (Btc) There are between $ 80,000 and $ 90,000, while Etherum (El) is stuck slightly below $ 2,000. The total market cap of all cryptocurries fell from $ 2.7 trillion to $ 2.6 trillion.

In the meantime, the stock market had its worst year from 2020. years. The blue chip Nasadak 100, S & P 500, and the Dow Jones set out in the correction.

Shock Fed Warning on Stagflation

Bitcoin, Altcoins could press the pressure after the president of the Federal Reserve Jerome Powell warned These Trump tariffs are likely to lead to higher inflation and more slow growth for the American economy.

“Our commitment is to keep long-term inflation expectations well-anchored and make sure that a one-time price level increase does not become a constant inflation problem”, Powell said Friday.

High inflation and high unemployment can create stagphation, which is difficult to manage, as actions to solve interest rate resolution ratio that can be exacerbated by an increase in growth, such as inflation and vice versa.

Powell warned that he was not in a hurry to reduce interest, because inflation remained high. His statement mirror is to like other officials Raphael Bostić and Adriana Kuglerwhich longer supported higher rates for combating inflation.

Trump, however, does not agree.

“This would be the perfect time to feed the president of Jerome Powell to reduce interest,” Trump wrote At his social media platform, accusing Powell “playing politics”.

The Fed Steering Board is an independent government agency.

Observers have a strenuous, notice that more Hawkish Fed, at the time when analysts are Recessionwould negatively affect bitcoin, altcoins and stock prices. Historically, these assets are doing well when the Fed reduces interest rates.

At the last check, Bitcoin traded approximately $ 83,435. Look down.

Bond market and raw oil prices offer pillow

On the positive side Top flash indicators suggest that the federal reserve will cut interest rates.

Crude oil prices were demolished in the last few days, with Brent, the Global Reference Refrigerant, they collapsed on Friday to $ 64. The western Texas intermediate fell to $ 62.

In addition, copper, which is often considered a marethorne world economy, is also omedian. These funds point to a potential recession as demand of individuals and companies outside.

The bond market sends the same message, with 10-year and two-year yields, which are 3.95% and 3.5%, respectively.

These signals indicate potential insighted fed, which could soon reduce interest rates. In the statement earlier this week, Goldman Sachs raised The presence of the American recession and predicted that the Fed would deliver at least three reductions later this year.

History shows that risky assets like actions, Bitcoin and Altcoina work well when the rate is handed. For example, they all increased in 2020. year when the Fed submitted a reduction in ambulance at the beginning of the pandemic. Stocks also had decades – a long rally when the Fed Feet during the global financial crisis.