Crypto Market Drops as Warsh Warns of Inflation Risks at Jackson Hole
The crypto market experienced a downturn following Kevin Warsh's hawkish speech at the Jackson Hole event. The US Federal Reserve Chair emphasized that the economy remains strong and resilient, but inflation remains above the Fed's target of 2%. According to Warsh, several signs indicate that financial conditions are not restrictive, including friendly lending standards and liberal credit markets.
Despite this, investors adopted a risk-off attitude after the speech, causing Bitcoin to drop 3% to $77,812. Ethereum and XRP also fell by 2.7% and 4.89%, respectively. Long liquidations reached $350.94 million in the overall crypto market.
Warsh discouraged the markets from seeking forward guidance from the Fed, stating that this strategy has 'overstayed its welcome'. He reiterated the Fed's commitment to achieving a 2% inflation target and emphasized the importance of underlying inflation moving towards their objective at sufficient speed.