Bitcoin fell below $77,000 after Federal Reserve Chair Kevin Warsh used his Jackson Hole speech to push September rate hike odds toward roughly 60% from about 35%, sending a macro shock throu
Bitcoin fell below $77,000 after Federal Reserve Chair Kevin Warsh used his Jackson Hole speech to push September rate hike odds toward roughly 60% from about 35%, sending a macro shock through crypto markets that Southeast Asian traders in Jakarta, Bangkok, and Manila felt at their morning desks.
The move reset risk appetite across the region overnight. When a hawkish Fed signal lands in the U.S. afternoon, ASEAN exchanges such as Indodax, Tokocrypto, and Coins.ph open into the aftermath, and this session was no different as Bitcoin gave up the $80K handle it had defended earlier in the week. For related coverage, see Bitcoin ETFs Draw $2.8B in 8-Day Streak as BTC Tests $80K.
TLDR — KEY POINTS
In his August 28, 2026 Jackson Hole address, Warsh said short-term interest rates remain the Fed's predominant tool, according to his official remarks. He anchored the case for caution in inflation data that is still running hot. For related coverage, see ETH ETFs Pull In $713M This Week, Narrowing Bitcoin ETF Gap.
Warsh noted the PCE price index stood at 3.7% over the prior 12 months and 4.1% annualized over the prior six months, and said he would be hard pressed to describe broad financial conditions as restrictive. Traders read that as a green light for a possible hike. For related coverage, see Ethereum ETFs Take $226M, Nearly Matching Bitcoin.
The repricing was fast. AP reported that traders lifted the implied probability of a September Fed rate hike to nearly 58% from 35% a day earlier, while the 2-year Treasury yield jumped to 4.35% from 4.22% just before the speech.
Granular futures pricing pointed even higher, with CME FedWatch odds of a September hike at 59.7% versus 35.4% before Warsh spoke.
September hike odds after speech 59.7% Up from 35.4% before the speech, according to Benzinga's summary of CME FedWatch pricing.The Bitcoin move sat against a still-constructive tape earlier in the run. CoinGecko market data showed BTC near $78,162 with a positive 24-hour change and a market cap around $1.57 trillion at fetch time, underscoring how quickly the sub-$77K prints developed intraday.
Bitcoin spot price $78,162 CoinGecko market data from the research pass showed BTC near $78.2K with a positive 24-hour change at fetch time.According to unconfirmed reports, Bitcoin reached an intraday low near $76,909 and the repricing triggered roughly $487 million in crypto liquidations, a single-source figure that could not be independently verified against exchange derivatives data in this run. Regional traders who had positioned for a dovish Fed after softer prints were caught offside, echoing the earlier session when Bitcoin dipped toward $78.4K as Warsh downplayed cooling inflation.
A hawkish stance means a central bank leans toward tighter policy, higher rates, and slower liquidity growth, while a dovish stance leans toward cuts and easier conditions. Warsh's refusal to call financial conditions restrictive tilted the Fed's read firmly hawkish just weeks before the September 15-16 FOMC meeting.
Higher expected rates lift the return on cash and short-dated Treasuries, pulling capital toward yield and away from speculative, non-yielding assets like Bitcoin. The jump in the 2-year yield to 4.35% is the clearest channel: when safe money pays more, risk assets reprice lower.
ASEAN desks feel this through the dollar. A firmer U.S. rate path tends to strengthen the greenback against the rupiah, baht, and peso, raising the local-currency cost of holding crypto and often thinning liquidity on regional venues even when global order books hold up. Traders who had watched crypto markets brace ahead of Warsh's Jackson Hole speech had priced a friendlier outcome.
Jon Faust, a former Fed adviser, told AP that Warsh found a way to convey that if necessary he would support raising rates, which is one thing people were concerned about.
He found a way to convey that if necessary he would support raising rates, which is one thing people were concerned about. — Jon Faust, via AP News
The September 15-16 FOMC decision is now the dominant macro checkpoint. With hike odds near 60%, any incoming U.S. inflation or jobs data that confirms sticky prices could push those odds higher and keep pressure on Bitcoin.
The first technical question is whether Bitcoin can reclaim and defend the $77K area or whether it slips toward lower support. Sentiment, meanwhile, has room to cool: the Fear & Greed Index still read 69, or Greed, even as the sell-off unfolded, leaving space for a sharper mood swing if rate fears deepen.
For Southeast Asia, the read-through is practical. A stronger dollar and higher U.S. rates typically slow local accumulation, and regional exchanges like Upbit KR, Tokocrypto, and Coins.ph may see thinner spot volumes until the September Fed path clears. ASEAN's 700 million residents remain among the most active retail crypto users globally, and this macro window will test how much regional demand can absorb a hawkish Fed.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
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