Bitcoin edged higher on Thursday morning, recovering slightly after a sharp midweek sell-off triggered by comments from Federal Reserve chair Jerome Powell.
Speaking in Chicago, Powell warned that President Trump’s sweeping tariff hikes could push up inflation while dampening economic growth -raising fears of stagflation. T
he warning rattled crypto markets, sending Bitcoin briefly down to $83,700 after flirting with $86,000. In late morning trade, it had stabilised around $84,471.
Treasury yields dipped in response before climbing again on Thursday, while gold surged to a record high above $3,300, reaffirming its safe-haven status.
In contrast, Bitcoin has failed to attract similar demand, with analysts at QCP Capital questioning its role as "digital gold" in the current environment.
Altcoins showed more resilience, with Solana jumping 8%. Powell also highlighted the need for clearer regulation on stablecoins and suggested some crypto-related banking rules could be relaxed, provided financial stability is maintained. Bitcoin remains defensive, with investors still cautious.