Warsh's Hawkish Message Crashes Bitcoin Rally

BTC's rally from under $65,000 to over $81,000 faced its first major macro setback after Fed Chair Kevin Warsh delivered a hawkish message at Jackson Hole on Friday.

The asset remained relatively stable during the speech but dumped by $3,000 in hours after its conclusion, slipping below $77,000 for the first time in almost a week.

Fed Chair Warsh emphasized that inflation remains too high, the US economy is still strong, and the Federal Reserve cannot simply declare victory.

The Fed's 2% inflation objective is 'firm and fixed,' and policymakers will continue to 'have work to do' until inflation moves toward 2% 'clearly and at sufficient speed.'