Bitcoin Price Slides After Warsh Makes Hawkish Speech at Jackson Hole

Bitcoin weakened over the weekend after Federal Reserve Chair Kevin Warsh delivered a more aggressive policy message at the Jackson Hole Economic Policy Symposium, although the cryptocurrency remains significantly higher than it was earlier last month.

The crypto was trading between roughly $77,588 and $77,984 on August 29, declining approximately 2% to 2.5% during the past 24 hours.

Despite the decline, Bitcoin was still up 23.2% against the USD since August 15. The rally began after the U.S. Treasury announced plans in mid-August to expand its bond-buyback activity.

Market sentiment received another boost when President Donald Trump met with several crypto executives and voiced support for developments within the industry. Among the subjects discussed was the possibility of bringing Hyperliquid operations to the United States. Trump also indicated openness to purchasing substantial quantities of Bitcoin after receiving recommendations from his advisors.

The developments helped stimulate demand for spot Bitcoin ETFs. The products recorded nine consecutive sessions of net inflows before that run ended Friday, when investors withdrew about $202 million.

Other developments had also begun creating pressure on risk assets. U.S. inflation remained persistent, with the personal consumption expenditures price index increasing in July. Bitcoin initially absorbed the concern and later climbed to a weekly peak of $81,455.

Optimism surrounding a proposed Securities and Exchange Commission overhaul of custody rules, along with Charles Schwab’s broader digital-asset offering, provided additional support.

The market tone shifted sharply following Warsh’s address at Jackson Hole on Friday. The Fed chief addressed the symposium’s focus on financial innovation and its consequences for payments and monetary policy. His remarks were widely viewed as hawkish. Warsh said the central bank still had unfinished work and argued that forward guidance had remained in place for too long.

Expectations for a potential rate increase subsequently rose from about 35% to around 50%. Treasury yields moved higher, while gold and other precious metals edged lower. Bitcoin, which had been trading near $79,500 before the speech, briefly fell below $77,000 before buyers stepped in.

Technical indicators suggest the market had already been running hot. Bitcoin faces resistance around $79,500 to $80,300, while support is currently concentrated near $76,800 to $77,000. The 14-day RSI stood at 70, with the Stochastic indicator at 85, both pointing toward elevated conditions. However, MACD remains positive, suggesting underlying bullish momentum has not yet been fully broken.

BTC price movement is going to be watched closely this month by firms like American Bitcoin Corp. (NASDAQ: ABTC) to see whether choppy trading carries on or prices continue climbing.

About CryptoCurrencyWire

CryptoCurrencyWire (“CCW”) is a specialized communications platform with a focus on blockchain and the cryptocurrency sector. It is one of 75+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, CCW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, CCW brings its clients unparalleled recognition and brand awareness. CCW is where breaking news, insightful content and actionable information converge.

To receive SMS alerts from CryptoCurrencyWire, text “CRYPTO” to 888-902-4192 (U.S. Mobile Phones Only)

For more information, please visit https://www.CryptoCurrencyWire.com

Please see full terms of use and disclaimers on the CryptoCurrencyWire website applicable to all content provided by CCW, wherever published or re-published: https://www.CryptoCurrencyWire.com/Disclaimer

CryptoCurrencyWire
Austin, Texas
www.CryptoCurrencyWire.com
512.354.7000 Office
Editor@CryptoCurrencyWire.com

CryptoCurrencyWire is powered by IBN