Bitcoin falls below $77K after Warsh's hawkish Jackson Hole speech raises September rate hike expectations. Spot Bitcoin ETFs record $202 million in outflows, ending a nine-day positive strea
Bitcoin — BTC, suffered a sharp reversal Friday after Kevin Warsh delivered a hawkish Jackson Hole speech. BTC fell toward $78,442 on Bitstamp during the selloff. The decline followed fresh concerns about U.S. inflation and interest rates. Traders quickly increased September rate hike expectations after Warsh's remarks. Bitcoin later traded near $77,494 after falling 3.4%. The move erased part of last week's powerful rally. Investors now face renewed pressure as macro risks return.
https://twitter.com/ardizor/status/2093341086026465339Kevin Warsh adopted a cautious stance toward recent inflation improvements during his speech. He argued that falling CPI and PCE readings show limited progress. The Fed still wants inflation to return sustainably toward the 2% target. Warsh's comments suggested policymakers remain uncomfortable with current price pressures. Markets reacted quickly as traders reassessed September monetary policy expectations.
CME FedWatch data showed September hike odds climbing above 59%. The previous day, traders placed those odds near 35%. Such a rapid change created fresh pressure across risk assets. Bitcoin responded with a sharp decline as traders reduced risk exposure. The U.S. dollar also strengthened following Warsh's remarks. The dollar index gained 0.5% during Friday's trading session.
A stronger dollar often creates additional pressure across risk assets. Higher interest rate expectations can also reduce demand for speculative investments. Bitcoin reached $81,330 before sellers took control of the market. Bears then pushed BTC toward the $77,000 region. The move showed how quickly sentiment can change around major economic events. Traders now need to watch whether buyers defend the lower support levels.
Spot Bitcoin ETFs recorded $202 million in net outflows on August 28. SoSoValue data shared by Wu Blockchain showed the latest decline. The outflows ended a nine-day streak of positive Bitcoin ETF flows. That development gives traders another reason to remain cautious. Strong ETF demand had supported Bitcoin during the previous rally.
A sudden reversal could weaken one of the market's strongest recent catalysts. Investors will now watch whether outflows continue during upcoming sessions. Ethereum ETFs moved in the opposite direction during the same period. Ethereum products attracted $102 million in net inflows on August 28. The figure extended Ethereum ETFs' inflow streak to 10 consecutive days.
The divergence highlights changing institutional demand across major digital assets. Bitcoin still leads the broader market in institutional exposure. However, Ethereum has recently attracted significant capital through regulated investment products. Continued Ethereum inflows could influence broader crypto sentiment. Bitcoin may need renewed ETF demand to regain stronger upward momentum.
