Bitcoin (BTC) declined to $78,442 on Bitstamp in volatile trading after Federal Reserve Chair Kevin Warsh signaled no imminent shift in monetary policy despite recent softer inflation data. The drop followed Warsh’s keynote speech at the Jackson Hole Symposium, where he emphasized that progress on inflation remains modest and that recent improvements do not reflect a meaningful trend change.
Warsh, speaking in his first Jackson Hole address, reiterated the Fed’s 2% inflation target and dismissed the notion that lower-than-expected Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE) prints signal a downtrend. He also criticized the Fed’s past reliance on forward guidance, stating that such practices have overstayed their usefulness and will not return as a regular tool.
The remarks contributed to a cautious tone in crypto markets, with BTC trading in a narrow intraday range around $80,000. Analysts noted that sustained gains above $83,000 would depend on derivatives market dynamics, particularly funding rates and open interest growth. QCP Capital highlighted that a breakout would require derivatives to support price action without excessive leveraged positioning.
Onchain data showed resistance between current levels and $86,000, limiting upside momentum. Bitcoin’s month-to-date return stood at 26.35%, marking its strongest August performance since 2017, according to CoinGlass data. U.S. equities, meanwhile, edged higher, with the S&P 500 and Nasdaq Composite up around 0.5% following Warsh’s comments.
