Bitcoin Soars to Three-Month Highs as Investors Eye Warsh's Jackson Hole Speech

Bitcoin's price has surged over $15,000 in the past 10 days alone, reaching three-month highs. This rally is largely driven by the return of Bitcoin ETF inflows, with US-listed ETFs recording $232 million of net inflows yesterday and cumulative inflows exceeding $2.8 billion over the last eight days.

The macroeconomic backdrop has become more supportive for scarce assets like Bitcoin, with concerns about fiscal deficits and government debt contributing to its rise. The US Treasury's expanded long-term bond buyback program is seen as a bullish catalyst.

However, investors are watching Fed Chair Kevin Warsh's speech at the Jackson Hole Economic Symposium closely. While some traders expect explicit hints ahead of the September FOMC meeting, Warsh may tip his hand about longer-term issues like above-target inflation tolerance and the central bank's relationship with the US Treasury.