Bitcoin Crashes by $3K as Warsh Speech Sparks Market Panic

The Bitcoin price plunged by $3,000 in just one hour as liquidations reached $200 million hourly. The sudden dump followed Kevin Warsh's speech at Jackson Hole, where he reaffirmed the US Federal Reserve's 2% inflation target and called it 'firm and fixed.'

Warsh's hawkish stance was a surprise to many, who had expected him to follow a more dovish approach like US Treasury Secretary Scott Bessent. The unexpected comments sent shockwaves through the market, causing Bitcoin to dip from around $79,500 to $78,500 during the speech.

However, even after Warsh finished speaking and the initial selling pressure subsided, the price continued to slide in the following hour. This led to a wave of liquidations, with over $200 million worth of levered long positions being closed out at one point.

The impact was not limited to Bitcoin alone, as many altcoins also suffered significant losses. Ethereum lost 3% to fall below the $2,500 level, while BNB and XRP dropped by more than their peers. The only exception was XRP, which plummeted by a staggering 5%.