BTC and XAU Slide as Fed Chair Goes Hawkish

Bitcoin and Gold prices are declining on Friday as investors reassess their positions following recent gains. Bitcoin reached $81,500 earlier in the day but was met with resistance, contributing to the ongoing correction. Meanwhile, Gold hovers below $4,600 after a 3% decline from its August peak of $4,697.

Fed Chair Kevin Warsh expressed concerns about elevated inflation at the Jackson Hole Economic Policy Symposium, warning that if price pressure does not ease, stricter monetary policy, including higher interest rates, may be necessary. While acknowledging some improvement in inflation readings, Warsh emphasized the need for underlying trends to show meaningful progress toward the Fed's objective.

Bitcoin is still considered bullish above key Exponential Moving Averages (EMAs), but its upside has been capped by recent rejections from the $81,000-$82,000 supply range. Technical indicators, including the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), suggest some loss of upside strength.