Bitcoin Tanks Below $77k on Warsh's Hawkish Inflation Warning

Bitcoin prices plummeted below $77,000 on Friday after Federal Reserve Chair Kevin Warsh delivered a hawkish speech at Jackson Hole. The address warned that inflation remains too high and set off a wave of selling in risk assets.

The sudden drop saw over $478 million in leveraged positions liquidated as traders scrambled to react to the possibility of higher interest rates.

Before recovering slightly, Bitcoin briefly dipped to $76,845 before stabilizing around the $78,000 mark. The market's reaction underscored concerns about inflation and its impact on asset prices.