Bitcoin Soars 26%, But Fed Warns Era of Cheap Borrowing Is Over

Bitcoin surged about 26% in August amid bets against the dollar, but Federal Reserve Chair Kevin Warsh warned that the era of cheap borrowing is over. Speaking at the G20 meeting, Warsh said stronger economic growth is pushing interest rates higher, which could challenge Bitcoin's rally since it pays no yield.

Treasury Secretary Scott Bessent increased bond buybacks to calm markets but acknowledged he can't control interest rates. Investors should watch for potential market volatility in September as higher yields make traditional savings more attractive than Bitcoin.