Bitcoin Price Stalls Amid Hawkish Fed Comments and Cooling Institutional Demand
The recent rally in Bitcoin's price has stalled near $77,498 after Federal Reserve Chair Kevin Warsh expressed hawkish views at the Jackson Hole symposium on August 29. This shift disrupted markets and forced traders to reassess expectations for a September rate cut.
Bitcoin, being a risk-sensitive asset, felt the pressure immediately. The hawkish tone triggered a wave of profit-taking and liquidations, which underscores how intertwined Bitcoin's price dynamics are with broader monetary policy and inflation outlooks.
Institutional demand cooled after a remarkable surge in August, where US spot Bitcoin ETFs attracted $2.23 billion in net inflows over the seven days ending August 30. This inflow streak abruptly ended on August 28, when ETFs recorded $201.9 million in net withdrawals.
Ethereum has outperformed significantly, gaining approximately 40% in August and trading near $2,455-$2,460 as of August 30. Solana also posted a strong independent rally of about 10% this week, highlighting a nuanced crypto landscape where altcoins continue to attract capital.