Bitcoin and cryptocurrency prices have taken a hit after US President Donald Trump threatened to impose tariffs on goods from Canada, Mexico, and China. The drop comes amid concerns over inflation and the Federal Reserve’s rate-setting decisions.
Federal Reserve Chair Jerome Powell has faced opposition from Trump over the pace of interest rate reductions. A recent warning from Massachusetts Senator Elizabeth Warren suggests that even the Fed chair could be fired by the president.
Arthur Hayes, a legendary crypto trader, believes the Fed is “teasing” a return to quantitative easing due to rising US debt. However, he predicts the price will rebound towards $90,000 as Trump softens his tariff rhetoric and the Fed becomes increasingly dovish.
10x Research founder Markus Thielen also sees potential for a recovery in bitcoin prices. He points to Powell’s signal that the Fed would look past short-term inflationary pressures, laying the groundwork for future easing.
The recent drop in bitcoin price has raised concerns among investors. However, some experts predict a rebound as Trump and the Fed navigate the complex web of global trade policies and monetary conditions.
Source: https://www.forbes.com/sites/digital-assets/2025/03/30/bitcoin-and-crypto-braced-for-a-huge-36-trillion-april-fed-price-flip