Crypto
Warsh Sounds Alarm on Cheap Money Era Ending for Bitcoin
Fed Chairman Kevin Warsh stated that cheap money is over, and growth is picking up. This could be bad news for Bitcoin, which gained about 26% in August.
Warsh spoke at the Group of 20 meeting in Asheville, North Carolina, where he argued that stronger growth lifts interest rates. Savers then get paid to wait, while Bitcoin pays nothing.
Treasury Secretary Scott Bessent doubled the size of Treasury's bond buybacks to at least $4 billion each on August 19, but Warsh says this won't be enough to change the equilibrium price. The market is not listening, with the 30-year Treasury yield reaching a 19-year high.