Bitcoin Reverses Early Gains Following Fed Chair Powell’s Warning on Tariff Impact

Bitcoin’s intraday rally was short-lived as Federal Reserve Chair Jerome Powell highlighted potential economic risks stemming from trade tariffs. The cryptocurrency, which had shown upward momentum earlier in the trading session, quickly pared gains as market participants digested the implications of Powell’s comments. This price action demonstrates Bitcoin’s continued sensitivity to macroeconomic policy signals, particularly from U.S. monetary authorities. Analysts note that tariff-related uncertainties may create headwinds for risk assets, including digital currencies, as investors reassess growth prospects in light of potential trade restrictions.

The liquidations are also on the rise, with almost $300 million being wiped out on a daily scale. The total number of wrecked traders stands above 140,000.