Bitcoin Slips Below $80,000 as Warsh Vows to Tame Inflation

Bitcoin slipped back below $80,000 on August 28, 2026 after Federal Reserve Chair Kevin Warsh pledged to bring inflation back under control. This move was part of a broader market adjustment, with short-term Treasury yields increasing and some risk-on momentum cooling down.

Warsh emphasized that financial conditions are not restrictive, but stressed the importance of inflation moving towards the Fed's target. He reinforced expectations that policy could stay tighter for longer, which had an impact on Bitcoin and other rate-sensitive assets.

The price drop was modest compared to the broader crypto rebound, with Bitcoin remaining well above levels seen earlier this month. However, the move still highlights the sensitivity of cryptocurrency markets to monetary policy decisions and inflation expectations.