Bitcoin Dips on Warsh's Inflation Warning: $83K Hinge on Derivatives
The price of Bitcoin (BTC) dropped to $78,442 on Friday as US Federal Reserve chair Kevin Warsh delivered his keynote speech at the annual Jackson Hole Symposium.
Warsh downplayed recent lower-than-expected inflation prints in the Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE) index, stating that they do not indicate a downtrend in underlying trends. He emphasized that inflation has not 'meaningfully improved' despite the recent softer numbers.
The Fed chair also committed to keeping the 2% inflation target and avoided giving forward guidance on future monetary policy, which some analysts see as an attempt to reduce uncertainty in the markets.
Despite Warsh's comments, Bitcoin's price action continued to gyrate around $80,000, with a narrow intraday range ahead of the August monthly close. Analysts stress that derivatives traders will play a crucial role in sustaining further price gains for BTC above $83,000.