Bitcoin Value Fluctuates in Response to Fed Chair Powell's Remarks on Tariff Threats

Bitcoin experienced significant price volatility today, rising above $85,500 before sharply falling in response to comments made by Jerome Powell, the Chairman of the US Federal Reserve. Powell discussed potential economic impacts of tariffs against China and other nations, suggesting that a rush of imported goods to avoid escalating tariffs could negatively impact gross domestic product estimates.

He further stated that these tariffs, possibly rising to 245% for China, might cause the central bank to deviate from its goals of balancing inflation and ensuring full employment. Powell's comments also introduced uncertainty around future interest rates, leading to immediate fluctuations in Bitcoin's price.

These financial uncertainties also contributed to a rise in liquidations, with nearly $300 million being wiped out on a daily scale and over 140,000 traders affected.