Warsh's Hawkish Tone Sends Bitcoin Price Plummeting
Bitcoin's price took an unexpected hit after Kevin Warsh's speech at Jackson Hole, falling by around $3K in just one hour. The sudden drop dragged many altcoins down with it, resulting in over $200 million in liquidated positions.
The primary cryptocurrency had been trading relatively steadily before Warsh's speech, but its hawkish tone sparked a market reaction that saw BTC dip from around $79,500 to $78,500 during the speech and then return to its starting point. However, in the following hour, the market mimicked Wall Street, with prices plummeting.
Warsh reaffirmed the Fed's 2% inflation target, calling it 'firm and fixed.' While he didn't confirm any rate hikes at the upcoming FOMC meeting next month, prediction markets saw an increase in odds for such a move. Other large-cap altcoins like Ethereum, BNB, XRP, ADA, XLM, and BCH also suffered losses, with Bitcoin Cash plummeting by almost 9% daily to under $250.