Warsh's Hawkish Message Triggers Crypto Market Crash
Fed Chair Kevin Warsh's hawkish message at the 2026 Jackson Hole Symposium has sent shockwaves through the crypto market, with Bitcoin plummeting to $77,901.87 and Ethereum falling to $2,444.00 in just 24 hours.
The Fed's 2% price stability target is now seen as a firm, fixed target by Warsh, who emphasized that delivering stable prices is the Fed's job 'no excuses.' This stance has revived expectations of a September rate hike, with odds surging from 30% to 49%.
Crypto markets are recalibrating to a less accommodative Fed outlook, leading to a sharp drop in total crypto market cap to $2.74 trillion.
However, not everyone sees further downside ahead. Michaël van de Poppe notes that the market has flushed out downside liquidity and expects Bitcoin to move sideways rather than continue falling sharply.