Crypto
Fed Hawkishness Sends BTC, US Indices into Tumble
Bitcoin and US indices took a sharp decline yesterday afternoon after Fed Chair Kevin Warsh's hawkish speech at Jackson Hole. His remarks led to an increase in the probability of a 25 bp rate hike at the September meeting, which rose to 57.5% according to CME FedWatch.
The strong emphasis on price stability and bringing inflation back to target supported the US dollar and Treasury yields but weighed on risk assets like equities and Bitcoin.
On the hourly timeframe, the S&P 500 futures contract is testing its 200-period moving average and needs to hold around 7,700 points to avoid a deeper pullback.