Warsh Rate Hike Warning Sparks $488M Crypto Sell-Off

Fed Chair Kevin Warsh's recent speech at Jackson Hole revived fears of higher interest rates and triggered a $488 million crypto liquidation cascade.

The event saw Bitcoin plummet to as low as $76,909 before recovering to $77,712, down about 4% over the previous 24 hours.

Traders lifted the probability of a September rate increase to around 60%, from roughly 35% before Warsh spoke. Short-term Treasury yields rose and the dollar strengthened in response.

Warsh argued that inflation remains too high, despite recent better price readings, stating 'We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed.'