Bitcoin and Equities Plummet Amid Fed Rate Hike Fears

Global financial markets took a hit after Federal Reserve Chair Kevin Warsh's hawkish remarks at the Jackson Hole conference. The speech sparked an increase in expectations for a September rate hike, with the probability of a 25 basis point rise now standing at 57.5%, according to CME FedWatch.

Just a day before Warsh's speech, markets were pricing in only a 35.4% chance of a rate hike next month, but expectations for tighter policy quickly escalated after his comments.

The emphasis on price stability and bringing inflation back under control supported the US dollar and Treasury yields, while weighing on risk assets such as equities and Bitcoin.