Fed Hawkishness and Volatile Markets Push Bitcoin Below $78,000

Bitcoin's price has been volatile in August, with a recent decline to below $78,000 after Federal Reserve Governor Kevin Warsh delivered hawkish comments on inflation risks at the Jackson Hole symposium.

The remarks sparked concerns about tighter monetary policy and triggered a risk-off move across financial markets, affecting cryptocurrencies. This was followed by notable shifts in institutional flows, with U.S. spot Bitcoin ETFs recording $201.8 million in net outflows on August 29.

However, the hawkish Fed tone did not signal a wholesale retreat from Bitcoin, as August remains a strong month for Bitcoin ETFs overall, with cumulative net inflows around $3.3 billion.

Ethereum (ETH) and other altcoins charted a different course, with Ethereum surging over 30% this week to reclaim the $2,500 level by August 29, driven by robust fundamentals, rising open interest, and strong trading volumes.