Bitcoin Falls Below $80,000 as Fed's Warsh Vows Inflation Tackling

Bitcoin's price dipped below $80,000 on Friday after Federal Reserve Chair Kevin Warsh's vow to bring inflation back in line. Warsh emphasized that policymakers must be confident that underlying inflation is moving toward their 2% target, warning that otherwise 'we have work to do.'

In a speech at the Fed's annual conference in Jackson Hole, Wyoming, Warsh stated that financial conditions are not restrictive and that interest rates are the central bank's primary tool for achieving its mandate. However, he stopped short of signaling support for an interest-rate hike when Fed officials gather in September.

The market reacted to Warsh's comments by pushing up short-term Treasury yields, with two-year Treasuries rising by as much as nine basis points to 4.32%. The implied probability of a rate hike in September rose to above 50%, up from around 36% before the speech.