Warsh's Hawkish Tone Fades Amid Dovish Turn as Fed Hike Odds Weaken

Bitcoin's price action this week was driven by Fed expectations, particularly after Warsh's Jackson Hole speech on August 28-29. His hawkish tone sent September hike odds above 60%, causing Bitcoin to fall from $81K to $76K.

However, Waller's dovish turn later in the week reversed this trend, pushing Bitcoin back up to $82.2K.

The White House is unlikely to allow a rate hike before the midterms, supply-driven inflation and a stretched bond market also point towards a Fed hold on September 16.

In other news, DATs (Decentralized Autonomous Tokens) are seeing increased activity, with Strategy leading the charge back into the market. A single day of buying saw $630 million in DAT purchases, the largest since June, while spot Bitcoin ETF inflows continue to rise, reaching a total net asset value above $100 billion for the first time.

The cryptocurrency market is also seeing new developments, including record daily volumes on Robinhood Chain ($1.5-1.6 billion) and innovative token launches such as Pons' 25,000 tokens in one day.