Warsh's Comments Spark Selloff, But Long-Term Sentiment Remains Bullish on Bitcoin
Bitcoin's price rally stalled on Friday after Federal Reserve Chair Kevin Warsh's hawkish comments at the Jackson Hole conference. The price dropped as low as $76,877, giving up most of a double-digit weekly gain.
The drop came after Warsh said the Fed still has 'work to do' on inflation, which traders read as hawkish. This led to a jump in September rate-hike odds to 55.7% from 35.4% a day earlier, according to the CME Group's FedWatch tool.
Despite the selloff, long-term sentiment remains bullish. Myriad's 'BTC next move' market has Bitcoin's price predicted to reach $84,000 by 77%, up 31.7 percentage points from last month. This is a significant shift in trader sentiment, as the outcome was previously split.
The fundamental case for higher prices hasn't changed. U.S. spot Bitcoin ETFs have seen inflows of $2.8 billion over eight straight days through Wednesday, supporting a part of the bond market that has seen weak demand since June.