Warsh's Hawkish Tone Brings Crypto Rally to a Halt

The recent rally in crypto markets has stalled after Fed Chair Kevin Warsh struck a hawkish tone at the Jackson Hole symposium, implying a rate hike next month is still possible.

Warsh's speech introduced uncertainty about the Federal Reserve's intentions, causing the market to reprice and leading to a pullback. However, this does not necessarily mean the rally is over.

The market had front-run expectations of a dovish Warsh, but his refusal to provide forward guidance has made it harder for investors to predict the Fed's next move.

Despite the uncertainty, some positive indicators remain, including the fact that ETF inflows have pushed year-to-date flows back into positive territory for the first time since April. The total inflow of $2.2 billion in the previous week was the largest of 2026.