Bitcoin · Federal Reserve (FED) · Kevin Warsh · Bitcoin Magazine
Bitcoin Drops Before Shrugging Off Fed Chair’s Inflation Comments
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Bitcoin dropped, then popped after Federal Reserve Chair Kevin Warsh gave his first major speech as head of the U.S. central bank and said he had “more work to do” to fight inflation.
Key facts
- The leading cryptocurrency was recently trading for $79,474 after dropping as low as $78,630 before quickly rising again
- The Federal Reserve Bank of Kansas City is on Friday holding the annual event at Jackson Hole, Wyoming, where central bankers, Federal Reserve officials, policymakers and academics will gather to discuss “Financial Innovation: Implications for Payments and Policy
- But Bitcoin has appeared to, at least for now, shrug off the speech
- Bitcoin’s started surging last week after the U.S. Treasury Secretary Scott Bessent announced the department would double the size of its long-dated bond buybacks
Summary
The leading cryptocurrency was recently trading for $79,474 after dropping as low as $78,630 before quickly rising again. Bitcoin has typically done well in a low interest rate environment but the Federal Reserve has been reluctant to lower borrowing costs due to sticky inflation in the world’s biggest economy. “But on the price-stability side of our mandate, the numbers are more concerning,” Warsh said after talking about employment. He added: “The team must be confident that underlying inflation is moving to their objective, clearly and at sufficient speed.