Bitcoin Stalls Below $80K Amid Hawkish Fed Outlook
Bitcoin dropped by 3% to $77K following Fed Chair Kevin Warsh's hawkish speech at the Jackson Hole event. In his remarks, Warsh emphasized that the Federal Reserve is far from done with fighting inflation, despite recent macro readings showing some improvement.
The speech led U.S. equities and crypto markets to interpret the comments as hawkish, causing the tech-heavy Nasdaq to fall 0.52% and the S&P 500 to decline 0.25%. Bitcoin followed suit, leading a broader decline in crypto.
Warsh's remarks also caused interest rate traders to reprice September's Fed rate hike to 57%, a +20% jump from the previous week. This reinforced renewed fears of a September Fed rate hike.
The drop in Bitcoin price below $80K has stalled its rally, which had helped it reclaim the crucial 200-day Moving Average (MA). The crypto asset rallied 30% in H2 of August thanks to the Treasury's planned $1T intervention to curb rising bond yields.