Warsh's Hawkish Comments Spark $477M in Bitcoin Liquidations
Bitcoin's price plummeted below $77,000 after Federal Reserve Chair Kevin Warsh's hawkish speech at Jackson Hole, warning that inflation remains too high. The sharp drop wiped out heavily leveraged positions and pushed total crypto liquidations to $478 million.
The Fed's main concern is still inflation, according to Warsh, who pointed to PCE and CPI inflation rates above the 2% target. He stated that recent inflation data was not enough to show lasting improvement in underlying trends.
Warsh's comments pushed traders to rethink expectations for future interest rates, putting fresh pressure on Bitcoin and other risk assets. As a result, around 95,731 traders were liquidated over the past 24 hours, with total liquidations reaching about $485.86 million.
The largest single liquidation was an $11.66 million ETHUSDT position on Binance. Bitcoin's next major move could depend on reclaiming its key technical level at around $81,000, according to analyst Ash Crypto.