Bitcoin Plunges Below $80K After Hawkish Warsh Speech

Bitcoin's price dropped by 3% to $77K after Fed Chair Kevin Warsh delivered a hawkish speech at the Jackson Hole event.

In his remarks, Warsh indicated that the Federal Reserve is far from done with fighting inflation, despite recent macro readings showing improvements.

The speech was seen as hawkish by U.S. equities and crypto markets, causing Bitcoin's price to drop below $80K.

Warsh stated, 'We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do.'

The probability of a September Fed rate hike increased to 57% following Warsh's speech, with interest rate traders repricing the event.

Bitcoin Option traders also scrambled for downside protection, illustrated by the BTC 25 Delta Skew rising from -10% to nearly 5%, marking a +15% increase.