Bitcoin Recovers After Powell’s Comments on Tariffs: Market Overview and XRP Analysis

Bitcoin’s price initially fell to $83,300 after Powell’s tariff comments but recovered to $84,891.80 with a weekly increase of 7.09%. Trading volume declined and Bitcoin’s market dominance slipped slightly. Jerome Powell warned of potential stagflation due to tariffs, impacting traditional assets. XRP is consolidating around $2.10, with potential bullish breakouts anticipated if resistance levels are breached.

Bitcoin experienced volatility following Federal Reserve Chairman Jerome Powell’s critical speech regarding tariffs imposed by President Trump. Initially, the cryptocurrency’s price fell approximately 2% from $85,300 to $83,300 but later recovered to trade around $84,891.80, indicating a 0.12% increase from the previous day and a 7.09% gain over the past week, despite broader market hesitance.

The market metrics show Bitcoin fluctuating between $83,314.85 and $85,428.28 within the last 24 hours, signalling stability. Trading volume declined by 7.13% to retain $24.59 billion, while market capitalisation dropped slightly by 0.11% to $1.68 trillion. Bitcoin dominance fell to 63.92%, suggesting that altcoins are regaining some market share after recent underperformance.

Futures activity also saw a modest reduction, with Bitcoin’s open interest diminishing by 0.54% to $54.36 billion. Total liquidations reached $3.96 million, primarily affecting short sellers. Long positions remained stable at $37,970, indicating market confidence as traders navigate potential short squeezes.

In his speech, Powell highlighted the adverse effects of tariffs on the U.S. economy, warning that aggressive trade policies could lead to stagflation, characterised by stagnant growth and rising inflation. As traditional assets and bitcoin faced selloffs, analyst Dylan Bane noted a likelihood of Bitcoin’s correlation with stock markets continuing, dependent on varying macroeconomic conditions.

In another spotlight, XRP is currently consolidating around $2.10, suggesting anticipation of potential breakouts. The 1-hour chart indicates a recovery from a downtrend, hinting at bullish momentum if key resistance levels are surpassed. Short-term investors should consider strategic stop losses to manage risk during volatile conditions.

On the 4-hour chart, XRP is trading sideways between $2.05 and $2.15, while the daily chart reflects a medium-term downtrend amidst signs of accumulation. Traders are advised to stay alert for breakouts above crucial resistance levels, which could target price ranges of $2.30 to $2.40 while also monitoring support levels to mitigate downside risk.