Bitcoin Tumbles Below $78K as Warsh Warns of High Inflation Expectations for Rate Hike Soar

Bitcoin's price dropped below $78,000 on Friday after Federal Reserve Chair Kevin Warsh warned that inflation remains too high in his Jackson Hole speech.

The Fed's preferred 12-month PCE inflation measure stands at 3.7%, and Warsh stated that policymakers must be confident that inflation is returning toward its 2% target 'clearly and at sufficient speed.'

Traders responded by raising the probability of a rate hike at the September Fed meeting to 55.7% from 35.4% on Thursday, according to CME FedWatch data.

Experts told The Crypto Times that yields, dollar liquidity, ETF demand, and derivatives positioning will now decide whether Bitcoin can recover above $80,000.