Bitcoin's price dropped to around $83,700 following remarks by Federal Reserve Chair Jerome Powell, who warned of inflation risks due to tariffs related to President Trump's trade policies. Powell indicated that the economic effects of these tariffs were uncertain and highlighted the tension between the Fed's dual mandates of maintaining inflation and ensuring employment. Bitcoin's decline came amidst a lack of clear direction from the Fed regarding interest rates, which has led to concerns among investors. While the Fed projected two rate cuts in 2025, market expectations suggest that more aggressive measures might be necessary. Powell's cautious stance reflects the complexity of the current economic climate and the need for careful monitoring of inflation trends as trade tensions escalate. Overall, Bitcoin's recent behavior indicates that it is reacting more like a risk asset amid these economic uncertainties than a safe haven investment.

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