Bitcoin Volatility Persists as Fed Chair Warsh Remains Cautious on Inflation

Bitcoin's price volatility continued on Friday after US Federal Reserve chair Kevin Warsh spoke at the Jackson Hole Symposium. Despite recent lower-than-expected inflation prints, Warsh stated that he sees no trend change in inflation and remains committed to the Fed's 2% target.

In his keynote speech, Warsh dismissed the lower PCE and CPI readings as a sign of a downtrend being in progress. He also emphasized that forward guidance has 'overstayed its welcome' and will not be made available again in the future.

Despite this cautionary tone, US stocks avoided losses on the back of Warsh's words, with both the S&P 500 and Nasdaq Composite Index up around 0.5% at the time of writing.

The BTC/USD price action continued to gyrate around the $80,000 mark, with some analysis suggesting that derivatives markets will play a crucial role in further price gains.