Bitcoin Tanks $3K After Warsh's Hawkish Jackson Hole Speech

Bitcoin's recent rally came to an abrupt end after Fed Chair Kevin Warsh delivered a hawkish message at Jackson Hole. The asset dumped by $3,000 in hours, slipping below $77,000 for the first time in almost a week.

The sell-off was not limited to Bitcoin, with essentially all other financial markets feeling the impact, including stocks and precious metals.

Warsh emphasized that inflation remains too high at 3.7% YoY, while its six-month annualized rate is even higher at 4.1%. He stated that the Fed's 2% inflation objective is 'firm and fixed' and that price stability won't restore itself without additional actions.

Market pricing cited by Reuters indicates that traders have assigned a 60% probability to a rate increase in September, up from one-third before Warsh's speech. US Treasury yields climbed again, while the dollar strengthened sharply after its decline last week.