Bitcoin’s Wild Ride: Powell, Tariffs, and the Ghost of the 70s

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What to know:

  • Fed Chair Jerome Powell raised stark concerns over the effects of Trump’s tariffs policy. Because apparently, tariffs are the new avocado toast—everyone’s talking about them, but no one’s sure if they’re good or bad. 🥑
  • Bitcoin and stocks both tumbled on Powell warning. Because nothing says “financial stability” like a market that panics at the sound of a single word. 📉

A modest bitcoin rally to a possible challenge of the $86,000 level quickly reversed during U.S. afternoon trading hours on Wednesday. Why? Because Federal Reserve Chairman Jerome Powell decided to drop a truth bomb about President Trump’s tariff regime. And by “truth bomb,” we mean the kind of statement that makes investors run for the hills faster than you can say “stagflation.” 💣

“The level of the tariff increases announced so far is significantly larger than anticipated,” said Powell in a speech. “The same is likely to be true of the economic effects, which will include higher inflation and slower growth.” Translation: Buckle up, folks. We’re about to relive the 1970s, complete with disco balls and economic despair. 🕺

In other words, stagflation — a throwback to a sizable portion of the 1970s when the U.S. experienced weak economic activity alongside double-digit inflation. Because who doesn’t love a good economic throwback? It’s like retro fashion, but with more financial pain. 👗

“We may find ourselves in the challenging scenario in which our dual-mandate goals are in tension,” continued Powell. And by “challenging,” he means “utterly chaotic.” Because nothing says “fun” like trying to balance inflation and growth while the economy is doing its best impression of a rollercoaster. 🎢

The price of bitcoin (BTC) fell about 2.5% in the minutes following the Powell remarks, now trading at $83,700, down 1.5% over the past 24 hours. Because when Powell speaks, the market listens—and then promptly freaks out. 🎙️

U.S. stocks, which had been trying to mount a comeback from opening declines, also were hit, the Nasdaq slumping 3.4% to a session low. Because why have a comeback when you can have a full-blown market meltdown instead? 🎭

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2025-04-16 21:02