#economy #crypto #bitcoin
💥 $BTC lost $81,000 due to the “hawkish” speech in Jackson Hole: what happened and what to expect next?
BTC’s rally from $65,000 to over $81,000 has encountered its first serious macroeconomic barrier. After the speech of Fed Chairman Kevin Warsh at the annual symposium in Jackson Hole, the price of the main cryptocurrency fell by almost $3,000 in a matter of hours, breaking the $77,000 mark. Altcoins, the stock market and precious metals followed Bitcoin into the “red zone”.
📌 The main thing about Kevin Warsh’s speech:
Tough stance on inflation: The Fed Chairman emphasized that the inflation target of 2% remains unwavering. Currently, the PCE indicator is 3.7% YoY (and 4.1% in annual terms over the past 6 months), which is significantly higher than the norm.
Skepticism about summer data: The Fed is not impressed by the positive June reports and is waiting for clearer signals about slowing inflation.
Strong economy: Warsh noted that the growth in business investment (~9%), the jump in the S&P 500 (+20%) and low unemployment (~4%) leave the regulator with room to further tighten monetary policy.
📊 Market reaction and rates:
Rate hike probability: The probability of a rate hike in September has increased from 33% to almost 60%.
Rising bond yields: Treasury yields and the US dollar (DXY) have risen sharply, creating an unfavorable environment for risky and speculative assets.
⚖️ Confrontation: Treasury vs. Fed
The market is now caught between two fires. On one side is the US Treasury (led by Scott Bessant), which is trying to lower borrowing costs and support liquidity. On the other side is the Fed, which is focused solely on curbing inflation and is prepared to keep rates high for longer than investors expected.
💥 $BTC lost $81,000 due to the “hawkish” speech in Jackson Hole: what happened and what to expect next?
BTC’s rally from $65,000 to over $81,000 has encountered its first serious macroeconomic barrier. After the speech of Fed Chairman Kevin Warsh at the annual symposium in Jackson Hole, the price of the main cryptocurrency fell by almost $3,000 in a matter of hours, breaking the $77,000 mark. Altcoins, the stock market and precious metals followed Bitcoin into the “red zone”.
📌 The main thing about Kevin Warsh’s speech:
Tough stance on inflation: The Fed Chairman emphasized that the inflation target of 2% remains unwavering. Currently, the PCE indicator is 3.7% YoY (and 4.1% in annual terms over the past 6 months), which is significantly higher than the norm.
Skepticism about summer data: The Fed is not impressed by the positive June reports and is waiting for clearer signals about slowing inflation.
Strong economy: Warsh noted that the growth in business investment (~9%), the jump in the S&P 500 (+20%) and low unemployment (~4%) leave the regulator with room to further tighten monetary policy.
📊 Market reaction and rates:
Rate hike probability: The probability of a rate hike in September has increased from 33% to almost 60%.
Rising bond yields: Treasury yields and the US dollar (DXY) have risen sharply, creating an unfavorable environment for risky and speculative assets.
⚖️ Confrontation: Treasury vs. Fed
The market is now caught between two fires. On one side is the US Treasury (led by Scott Bessant), which is trying to lower borrowing costs and support liquidity. On the other side is the Fed, which is focused solely on curbing inflation and is prepared to keep rates high for longer than investors expected.
