Cryptocurrencies, particularly Bitcoin and altcoins, are showing strong fluctuations due to economic changes initiated by Trump's tariffs.
Current State of the Crypto Market
Bitcoin ([BTC](https://crypto.news/price/bitcoin/)) fluctuated between $80,000 and $90,000, while Ethereum ([ETH](https://crypto.news/price/ethereum/)) remained just below $2,000. The total market cap of all cryptocurrencies decreased from $2.7 trillion to $2.6 trillion. Meanwhile, the stock market experienced its worst week since 2020, with major indices like the Nasdaq 100, S&P 500, and Dow Jones slipping into correction territory.
Fed's Warning on Stagflation
Federal Reserve Chairman Jerome Powell [warned](https://apnews.com/article/tariffs-inflation-economy-trump-powell-490417656971634592bbeb3b2ade3593) that Trump's tariffs would likely lead to increased inflation and slower growth for the U.S. economy. Powell stated, "Our obligation is to keep longer-term inflation expectations well anchored and to ensure that a one-time increase in the price level does not become an ongoing inflation problem." He also expressed reluctance to cut interest rates while inflation persists.
Positive Signals for Future Recovery
On a positive note, indicators suggest that the Federal Reserve may cut interest rates soon. Oil prices have dropped sharply, indicating a potential recession. The bond market is also signaling lower yields, suggesting a dovish Fed policy may be forthcoming. Goldman Sachs [predicted](https://www.reuters.com/markets/jpmorgan-lifts-global-recession-odds-60-us-tariffs-stoke-fears-2025-04-04/) that the odds of a U.S. recession have risen and that the Fed may deliver at least three rate cuts this year.
Cryptocurrencies are under pressure due to economic instability and inflation risks. However, positive signals in the market may provide hope for a potential recovery.
