Bitcoin Drops to $76,877 After Warsh's Hawkish Jackson Hole
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- Bitcoin dropped as low as $76,877 on Friday, giving up most of a double-digit weekly gain after Fed Chair Kevin Warsh's first Jackson Hole keynote warned inflation isn't cooling fast enough, with the selloff triggering roughly $481 million in liquidations across the crypto market—$360 million of which came from long positions.
- September rate-hike odds jumped to 55.7% from 35.4% a day earlier on the CME FedWatch tool after Warsh said the Fed still has "work to do" on inflation, declining to give markets any fresh guidance despite marking his 100th day in the job.
- Bitcoin closed Friday at $77,557, down 3.39%, retreating from an overnight high of $81,455 inside a resistance zone that has already capped several prior breakout attempts this year.
- Myriad bettors priced Bitcoin's next major move at 77% for $84,000 versus 23% for $55,000—a 31.7-point surge for the bullish side this month that Friday's rejection at resistance failed to dislodge, with $231,000 traded since the market opened in late February.
- U.S. spot Bitcoin ETFs pulled in $2.8 billion over eight straight days of inflows through Wednesday, the longest streak since April, tracing back to a Treasury Department announcement that it would at least double long-dated bond buybacks starting September 9 to support weak demand in that segment since June.
- PCE price index is running at 3.7% annually—nearly double the Fed's 2% target—and Warsh gave no timeline for when that changes, leaving traders exposed to headline-driven swings on every inflation print until the next rate decision.
Why it matters: Warsh's refusal to offer forward guidance means Bitcoin remains tethered to every inflation print between now and the next Fed meeting, with the PCE at 3.7% still nearly double target and resistance at $81,000–$82,500 having rejected multiple breakout attempts. The $2.8 billion ETF inflow streak shows institutional demand hasn't blinked, but leveraged longs just absorbed $360 million in forced selling—a warning that the next failed test at resistance could cascade harder.
Ask SkimNews
