Bitcoin experienced a brief rally towards $86,000 before reversing course following Federal Reserve Chairman Jerome Powell's warning about President Trump's tariff regime's inflationary and growth-slowing effects. Powell's hawkish stance, suggesting no imminent rate cuts, negatively impacted both Bitcoin, dropping 2.5% to $83,700, and the stock market. Powell also addressed the need for a legal framework for stablecoins, hinting at potentially relaxed banking regulations. Analysts believe this less dovish outlook dampens the outlook for cryptocurrencies.

Prepared by Christopher Adams and reviewed by editorial team.