Bitcoin Shrugs Off Fed Chair's Inflation Warning
Bitcoin's price dropped briefly to $78,630 after Federal Reserve Chair Kevin Warsh said he has 'more work to do' to fight inflation in his first major speech as head of the U.S. central bank.
Warsh emphasized the importance of achieving low and stable inflation, stating that 'on the price-stability side of our mandate, the numbers are more concerning.' He added that they must be confident that underlying inflation is moving to their objective 'clearly and at sufficient speed.' Otherwise, they have work to do.
This type of comment from the Fed can be bad news for Bitcoin, as it typically performs well in a low-interest-rate environment. However, the cryptocurrency has shown resilience lately, with some traders pricing in a 50% chance of a rate hike in September following Warsh's speech.
In a surprise move, Bitcoin quickly recovered and surged back up to $79,474, seemingly shrugging off the Fed Chair's comments.