Warsh’s Dovish Tone Sends Bitcoin Price Tumbling to $78.4K

US Federal Reserve chair Kevin Warsh downplayed recent lower-than-expected inflation prints in his keynote speech at the Jackson Hole Symposium, causing Bitcoin's price to dip to $78.4K.

Warsh stated that he sees no trend change in inflation despite softer readings in the Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE) index. He emphasized that forward guidance is no longer a regular practice for the Fed, as it was adopted during the Global Financial Crisis but has overstayed its welcome.

Warsh also dismissed recent lower-than-expected inflation prints as a sign of a downtrend being in progress, saying 'Each of these broad inflation measures have fallen significantly from their highs of a few years ago, but progress through the past couple of years has been more modest, and while this summer’s PCE and CPI readings were better than expected, they do not tell me that underlying trends have meaningfully improved.'

The BTC/USD price continued to gyrate around the $80,000 mark after Warsh's speech, with some analysts suggesting that derivatives markets will play a crucial role in determining further price gains.