Warsh Speech Sends Bitcoin Tumbling Below $77K

Bitcoin prices dropped below $77,000 following Federal Reserve Chair Kevin Warsh's Jackson Hole speech, which reinforced the possibility of further interest-rate hikes if inflation remains above target.

The move reversed part of Bitcoin's recent rally towards $80,000 and came as traders rapidly repriced the September Fed meeting. Rate futures pushed the probability of a 25-basis-point hike to 55.7%, up from 35.4% before Warsh spoke.

Warsh did not commit to a hike but stated the Fed would still have 'work to do' unless inflation moves convincingly towards its 2% target. July PCE inflation stood at 3.7%, leaving policymakers with limited room to declare victory over price pressures.