Forex
Bitcoin Slides as US Inflation Stays Hot, All Eyes Turn to Warsh's Jackson Hole Speech
US inflation remained above the Federal Reserve's target of 2% in July, with the PCE price index climbing 3.7% from a year earlier.
The data released on August 26 caused Bitcoin to fall below $78,600 as Treasury yields and the dollar rose.
The next major signal for Bitcoin will come from Fed Chair Kevin Warsh's Jackson Hole speech on Friday, which is expected to provide a clearer indication of how the Fed views inflation, interest rates, and economic growth.
If Warsh stresses inflation risks, markets could expect rates to stay higher for longer, weighing on Bitcoin. If he focuses on slowing growth and consumer demand, rate-cut expectations could strengthen, supporting liquidity and risk appetite.