Bitcoin Plummets Amid Jackson Hole Hawkish Speech by Kevin Warsh

The cryptocurrency market has taken a hit following Kevin Warsh's hawkish speech at the Jackson Hole event, where he emphasized that the US Federal Reserve still has work to do on inflation.

Warsh noted that the economy remains strong and resilient, with unemployment nearing a multi-decade low of 4.1%, according to FRED data. However, PCE inflation remains high at 3.7% in the last year and 4.1% annualized over the past six months, both well above the Fed's target of 2%. Furthermore, 54% of the components of the PCE basket have risen by 3% in the past year.

In his speech, Warsh discouraged the markets from looking to the Fed for forward guidance, stating that this strategy has 'overstayed its welcome'. This led investors to assume a risk-off attitude, causing Bitcoin to fall away from the $80K resistance line and trade at $77,812. Long liquidations also mounted to $138 million of the total $185 million.