Bitcoin Faces 54% Inflation Test as Fed Chair Highlights Sticky Metrics

Bitcoin is facing a new macro test as Federal Reserve Chair Kevin Warsh highlighted sticky inflation metrics in his recent speech at Jackson Hole. The test is centered around the personal consumption expenditures (PCE) basket, where 54% of the components have risen faster than 3% over the past year.

Warsh's remarks provided a clear standard for traders to judge the rebound's rate risk, and Bitcoin has been struggling to maintain its price above $80,000. The cryptocurrency slipped below this threshold during Asian trading after reaching $81,280 overnight.

The US-traded spot Bitcoin ETFs have absorbed over $1.1 billion in four completed sessions through August 27, but the Treasury is preparing larger liquidity-support buybacks that will begin on September 9.