Warsh's Hawkish Comments Send Bitcoin Price Reeling

Bitcoin's price took a hit after Fed Chair Kevin Warsh delivered a hawkish speech at the Jackson Hole event, dropping to $77K from $80K. This marks a 3% decline in just one day.

In his speech, Warsh emphasized that the Federal Reserve is far from done with fighting inflation, despite recent macro readings indicating some improvement. He stated, 'We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do.'

Warsh's remarks sent shockwaves through financial markets, causing the tech-heavy Nasdaq to decline 0.52% and the S&P 500 to fall 0.25%. Crypto markets also took a hit, with Bitcoin leading the decline at 3%.

The probability of a September Fed rate hike has increased to 57%, according to CME FedWatch, up from 37% just last week. This has traders scrambling for downside protection, as evidenced by the $BTC 25 Delta Skew rising by nearly 15%.