Bitcoin Slumps 4% Amid Fed Chairman's Inflation Pledge

Bitcoin's price took a hit on Friday after Federal Reserve Chair Kevin Warsh vowed to tame inflation. The digital asset dropped as much as 4% during trading, reaching $76,871.

The decline follows last week's 23% surge, which failed to extend further this week. Instead of pushing the price higher, investors appear to be waiting for signals on future monetary policy and market direction.

Short-term US government bond yields also rose, cooling the risk-on sentiment that had prevailed in recent sessions. This move indicates that investors are now more cautious about taking on risk.