Bitcoin fell 2.5% to $77,588 after Federal Reserve Chair Kevin Warsh delivered a keynote at Jackson Hole on Friday that was considered hawkish, ending a nine-day streak of spot bitcoin ETF inflows with a $202 million single-day outflow. The pullback followed a Thursday high of $81,455, and bitcoin now holds support near $76,800 to $77,000 as traders weigh higher rate-hike odds.
Warsh's Jackson Hole Debut Rattles Bitcoin
Bitcoin tapped a low of $76,877 on Friday after Kevin Warsh gave his first Jackson Hole keynote as Federal Reserve chair. The asset had reached a Thursday high of $81,455 before shedding 2.5% in value over the following day.
Warsh's speech, centered on the theme "Financial Innovation: Implications for Payments and Policy," was considered hawkish. He said the central bank still has work to do and that forward guidance had "overstayed its welcome."
Rate-Hike Odds Jump as ETFs Flip to Outflows
Following the speech, the odds of a rate hike jumped from 35% to the mid-50s, while Treasury yields rose and gold logged modest declines. Spot bitcoin ETFs, which had pulled in nine straight days of inflows, recorded a $202 million net outflow the same day, snapping the streak. Still, August remains a strong month for the funds, with roughly $3.1 billion to $3.3 billion pulled in overall.
Bitcoin Holds Support Near $77,000
Bitcoin's rally this month has still held up: the asset is up 23.2% since Aug. 15, lifted initially by the Treasury's mid-August announcement on expanding bond buybacks and by President Trump's meetings with crypto executives, where he discussed bringing Hyperliquid to the U.S. and said he was open to acquiring bitcoin. Sticky inflation also weighed on sentiment earlier in the week, as the personal consumption expenditures price index logged a rise in July, though bitcoin shrugged that off before the Warsh keynote hit.
Resistance now sits at $79,500 to $80,300, a level bitcoin lost after the speech, while support holds at $76,800 to $77,000. The daily RSI reads 70 and the Stochastic sits at 85, pointing to overbought territory, though the MACD remains in positive territory.
Source: Bitcoin News
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