Bitcoin Holds Above $79K as Fed's Warsh Stresses Inflation Priority

The Bitcoin price retreated from its peak but still maintained above $79,000 after Federal Reserve President Kevin Warsh emphasized that inflation remains a top priority. In his first major presentation at Jackson Hole since taking over as Fed Chair in May, Warsh stated that the central bank's focus should be on controlling prices.

He noted that inflation has been above the 2% target for 65 consecutive months and warned that 'we have work to do' unless there is clear and sufficient progress towards the goal. This tone was seen as a tougher stance, increasing the likelihood of future interest rate hikes.

The market reaction was swift, with chances of a September rate hike rising to 46% from around 30% earlier in the week. The dollar gained strength, Treasury yields rose, and risk assets faced pressure.