Fed Chairman's Comments Spark Crypto Price Plunge

The price of Bitcoin, Ethereum, and XRP plummeted today after comments from Fed Chair Kevin Warsh at the Jackson Hole Symposium sparked concerns about interest rates. The bitcoin price dropped to $77,450.87, a decline of 3.1% in 24 hours.

The sell-off was triggered by Warsh's statement that recent inflation readings were better than expected, but he did not commit to lowering interest rates. Instead, he called for a 'quieter' Fed, which would give markets fewer signals to trade around.

This shift in tone surprised traders, who had been pricing in a pause for the September meeting. The odds of a 25 basis point hike now sit at 57%, while the chance of a rate cut remains at zero.