The crypto market experienced volatility following a shock warning from the Federal Reserve on stagflation fears, leading to a decline in Bitcoin’s price and overall market capitalization. While the stock market took a significant hit, with the Nasdaq 100, S&P 500, and Dow Jones experiencing their worst week since 2020, Bitcoin (BTC) remained within a range of $80,000-$90,000, while Ethereum (ETH) failed to break through $2,000. The combined cryptocurrency market cap dropped from $2.7 trillion to $2.6 trillion. 10-year and 2-year Treasury yields saw a substantial drop to 3.95% and 3.5%, respectively, highlighting the potential for a recession. The Federal Reserve chairman Jerome Powell’s warning about the impact of Trump’s tariffs on inflation and slower U.S. growth prompted concern that the Fed might delay interest rate cuts despite their impact on inflation control. While investors await a possible recession, some analysts see a dovish Fed response as likely, predicting at least three rate cuts later this year. This could benefit assets like stocks and cryptocurrencies, which typically perform well when the Fed lowers rates.