Bitcoin Slumps as Fed Rate Hike Chances Rise

Bitcoin has fallen about 0.7% in the past 24 hours to around $77,800 on August 31st, marking its retreat from the $80,000 level after a failed attempt to hold above it.

The decline came as global markets priced in 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, with an implied probability of a September rate increase climbing to about 57%.

The two-year US Treasury yield reached its highest level in over a month, while Barclays revised its forecast to expect two 25-basis-point increases, in September and December.