Bitcoin Bounces on Hawkish Comments as Iran Tensions Escalate

Crypto markets were subdued on Monday as investors weighed hawkish comments from Federal Reserve Chair Kevin Warsh and escalating tensions between the U.S. and Iran.

Bitcoin edged up 0.5% to $79,038.3 by 17:44 ET (21:44 GMT), but its gains were capped by concerns over rising interest rates and inflation.

Warsh's comments at the Jackson Hole economic symposium on Friday sparked bets that the central bank will hike interest rates as soon as September, with markets pricing in a 60.4% chance of a 25 basis points increase.

The sharp escalation in tensions between the U.S. and Iran, including military strikes and threats to oil exports, added to uncertainty over inflation and interest rates.