Bitcoin Price Drops Amidst Higher Rate Hike Expectations
Bitcoin's price fell by about 0.7% over the past 24 hours to around $77,800 on August 31, extending its decline after another failed attempt to hold above $80,000.
The latest drop came as global markets adjusted to a higher chance of another Federal Reserve rate increase following Chair Kevin Warsh's speech at Jackson Hole on Friday.
Warsh said inflation remained too high and indicated that further tightening could be needed to return inflation to the Fed's 2% target, leading the implied probability of a September rate increase to climb to about 57%, while the two-year US Treasury yield reached its highest level in more than a month.
The rise in oil prices added to inflation concerns at a time when markets were already pricing a higher probability of another Fed rate increase.