Bitcoin Falls Below $77,000 Amid Worsening Inflation Concerns

Bitcoin dropped below $77,000 after Federal Reserve Chair Kevin Warsh delivered a hawkish speech at Jackson Hole. He warned that inflation remains too high, citing both PCE and CPI inflation rates above the Fed's 2% target.

Warsh stated that recent inflation data was not enough to show lasting improvement in inflation trends. This led traders to reassess their expectations for future interest rates, putting fresh pressure on Bitcoin and other risk assets.

The sharp move triggered heavy losses among leveraged traders, with total liquidations reaching about $478 million. Around 95,731 traders were liquidated over the past 24 hours, with long traders accounting for roughly $368 million of the liquidations.