Bitcoin Tumbles Below $80,000 After Warsh's Inflation Vow
Bitcoin's price dropped below $80,000 after Federal Reserve Chair Kevin Warsh pledged to bring inflation back to target. This move was seen as a moderate adjustment rather than a complete reversal of the recent crypto market rebound.
The price of Bitcoin eased along with other rate-sensitive assets but remained well above levels seen earlier in the month. The crypto market is still uncertain, with no clear direction in sight following a short squeeze last week due to a record liquidation of leveraged bearish bets on digital assets.
According to data from Coinglass, the open interest for Bitcoin futures has not seen a significant recovery after the wipeout. Jasper De Maere, an OTC trader at Wintermute, stated that despite Warsh's slightly hawkish tone, 'the market is digesting all of this relatively well so far.' He added that the speech fell in line with expectations.
Bitcoin dropped as much as 4% to $76,871 and is now little changed on the week. It had gained 23% in the previous one-week period but remains down about 40% from its all-time high of around $126,000 last October.