Warsh's Hawkish Speech Jolts Bitcoin Price

Bitcoin's price retreated on Friday after Federal Reserve Chair Kevin Warsh delivered a hawkish speech at the Jackson Hole Economic Policy Symposium. His keynote was focused on 'Financial Innovation: Implications for Payments and Policy', where he emphasized that the US central bank has 'work to do'. This sparked an immediate rate hike probability jump from 35% to the mid-50s, causing Treasury yields to rise and precious metals like gold to log modest declines.

The speech also had a ripple effect on cryptocurrency markets, with Bitcoin's price briefly trading under $77,000 before buyers absorbed the intraday low. This comes after a strong showing in August, where spot bitcoin exchange-traded fund (ETF) demand saw nine consecutive days of inflows, totaling around $3.1, $3.3 billion.

Despite this, the technicals show that momentum was already stretched before Warsh's keynote, with indicators such as the Relative Strength Index (RSI) and Stochastic indicating overbought territory. However, the Moving Average Convergence Divergence (MACD) remains in a positive territory, suggesting that bullish momentum is still intact.