Bitcoin Price Consolidates Below $78,000 Amid Federal Reserve Concerns
Bitcoin's price has stalled below $78,000 as it continues to consolidate after its strong August rally. According to data from crypto.news, Bitcoin ($BTC) is trading near $77,978 at press time, down about 0.8% on the day and roughly 1.9% over the past week.
The asset has pulled back from a local high near $81,300 while holding above the $77,700, $77,800 area. The decline followed a nearly 25% advance in August, Bitcoin's strongest monthly performance since November 2024.
Federal Reserve Chair Kevin Warsh said at Jackson Hole that policymakers would have 'work to do' if inflation failed to move toward the central bank's 2% target at a sufficient pace. This has increased expectations that the Fed could consider another interest-rate increase, which can pressure Bitcoin by raising the return available on government debt and reducing investors' willingness to hold risk assets.