Fed Chair signals potential rate hike

Aug 28, Fed Chair Kevin Warsh hinted at possible September rate hike as PCE inflation remains at 3.7%. Rate hike odds jumped to 55.7%.

avatar

Bitcoin Falls Below $77K as Market Faces $478M Liquidations Bitcoin fell below $77,000 after Fed Chair Kevin Warsh warned that inflation remains above the Fed’s 2% target. The comments raised concerns that higher rates could pressure risk assets. The drop triggered about $478 million in crypto liquidations. Bitcoin now faces resistance near $81,000, while $75,000 to $70,000 remains a key support zone. #CryptoCurrency #Bitcoin #BabaCrypto #Blockchain #CryptoMarket #BitcoinNews #Crypto #btc #CryptoNews

avatar

Bitcoin fell below $80,000 on Friday after Fed Chair Kevin Warsh delivered a hawkish message on inflation at the Jackson Hole symposium. Warsh pledged to keep inflation moving toward the Fed’s 2% target, lifting short-term Treasury yields and reducing some of the bullish momentum across risk assets. The cryptocurrency declined alongside other assets that are sensitive to interest rates as investors reassessed expectations for monetary policy. Warsh said financial conditions were not restrictive and stressed that the Fed must be confident that underlying inflation is moving toward its objective at a sufficient pace, suggesting rates could remain elevated for longer if price pressures persist. Despite the decline, the move was relatively modest and did not signal a broad reversal in the cryptocurrency rally. Bitcoin remained significantly above its levels earlier in August, indicating that investor demand for digital assets has held up despite renewed concerns over interest rates. bitcoin:native

avatar

GM Brothers and Sisters ✅Price action Bitcoin weakened after Fed Chair Kevin Warsh’s Jackson Hole speech, briefly falling to about $78,442 and failing to hold convincingly above $80,000. It later traded around $79,500. At the time of writing, BTC was up about 26.35% month-to-date, its strongest August performance since 2017. ✅Warsh’s inflation and policy stance Warsh said that although recent CPI and PCE prints came in softer than expected, they do not show that underlying inflation trends have “meaningfully improved.” He reaffirmed the Fed’s 2% inflation target and said the Fed would no longer use forward guidance. ✅Stock-market and risk-asset reaction U.S. stocks held up relatively well, with the S&P 500 and Nasdaq up about 0.5% at the time. Warsh also spoke positively about business performance and AI-sector growth. ✅What would be needed for further upside Technically: To keep the uptrend intact, Bitcoin would need to break above a downward-sloping trend line and hold the 50-week EMA near $77,250. On-chain: There is a thick band of resistance between the current price and $86,000. Derivatives: QCP Capital said that even a move above about $83,300 would matter less than whether funding stays contained and open interest rebuilds gradually. Otherwise the rally would be leverage-driven rather than spot-driven. ---------------- Plan accordingly & Choose wisely ✨May your life radiant with Bitcoin✨ bitcoin:native

avatar

Bitcoin dips to $78.4K as Fed's Warsh downplays softer inflation prints 💸📉 Curious about what's next? Get the full breakdown 👇 #Bitcoin #Crypto #Fed

avatar

Still waiting on $1.09 gas and for insurance premiums to return to earth, even as traffic deaths fall. Politicians promise prices. The Fed manipulates the price of money. Neither can repeal a market. That’s the beauty of Bitcoin: no president, Fed chair, bank or CEO controls it. 21 million. Rules, not rulers. Free markets work, even when the Fed acts like they don’t.

avatar

Bitcoin started the day as a momentum/ETF-driven breakout trade, but Warsh converted it into a Fed-rate-expectation trade; the resulting yield and dollar spike triggered leveraged-long liquidation, sending from $81.3K to $76.9K before stabilization around the upper-$77K/$79K area

avatar

Following Federal Reserve Chairman Warsh's indication that he might raise interest rates, the price of bitcoin:native dropped below $77,000. Over $200 million worth of long positions were liquidated in the last hour. Is this decline in cryptocurrencies a bull trap? Or will the drop continue? For now, the market is trying to hold at these levels... #Bitcoin #BTC #FED #Bearish

avatar

🚨 NEARLY $2 TRILLION WIPED OUT ACROSS STOCKS, #METALS & #CRYPTO IN JUST 2.5 HOURS. This wasn’t a random market dump. It was a violent repricing of interest-rate expectations after Fed Chair Kevin Warsh delivered a hawkish message at Jackson Hole. Here’s what triggered the sell-off: 1️⃣ WARSH PUT INFLATION BACK IN THE SPOTLIGHT Warsh warned that inflation remains too high and signaled that the Federal Reserve may have more work to do if inflation isn’t moving convincingly toward its 2% target. Translation: The market can no longer assume that rate cuts are the default path. Rate hikes are back on the table. 2️⃣ SEPTEMBER RATE-HIKE ODDS EXPLODED Market expectations for a September rate hike jumped from roughly 35% to around 60% following Warsh’s remarks. That is a massive repricing in just hours. When the probability of higher rates suddenly increases, investors immediately reassess risk across almost every major asset class. 3️⃣ THE 2-YEAR TREASURY YIELD SPIKED The U.S. 2-year Treasury yield climbed to roughly 4.29%, its highest level in a month. Why does that matter? The 2-year yield is highly sensitive to expectations for Fed policy. Higher yields = tighter financial conditions. And tighter financial conditions usually mean less liquidity flowing toward risk assets. 4️⃣ WHY CRYPTO GOT HIT SO HARD Bitcoin and crypto are extremely sensitive to liquidity and interest-rate expectations. When traders suddenly price in higher rates: 💵 The dollar strengthens 📈 Treasury yields rise 💰 Liquidity expectations deteriorate 📉 Risk appetite falls ⚠️ Leveraged positions get squeezed That creates a chain reaction. Long positions get liquidated → selling accelerates → support levels break → more leverage gets flushed. And crypto feels the impact faster than traditional markets. 5️⃣ THIS IS THE BIGGER STORY The market wasn’t simply reacting to one sentence from Warsh. It was repricing the entire monetary-policy outlook. For months, traders have been positioning around the possibility of easier financial conditions. Now the Fed is sending a different message: INFLATION IS STILL THE PRIORITY. Until the inflation data convincingly moves toward 2%, the Fed may be willing to keep policy restrictive or even tighten further. That is a major shift for markets. THE KEY LEVEL NOW: Watch how #Bitcoin behaves after this initial liquidation wave. If $BTC stabilizes and buyers absorb the selling, this could eventually become a leverage reset and a potential opportunity. But if support continues breaking while yields and the dollar keep climbing, the downside may not be finished. This is no longer just a crypto story. It’s a LIQUIDITY STORY. The next major move will likely depend on inflation data, Treasury yields and what the Fed does next. Markets just received a very loud reminder: DON’T FIGHT THE FED.

avatar

September rate-hike odds are back near 50-50 following Fed Chair Kevin Warsh’s Jackson Hole speech. The next inflation and labor-market reports are now critical for bitcoin:native and $ALTs. Warsh did not commit to a September hike, making the next data releases the key factor in determining the Fed’s next move.