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      Bitcoin Falls Below $78,000 Following Warsh's Jackson Hole Speech

      Bitcoin's price dropped below $78,000 on Friday afternoon, erasing nearly all of its weekly gains after Federal Reserve Chair Kevin Warsh delivered his first keynote address at the Kansas City Fed's Jackson Hole symposium. The cryptocurrency was last recorded at $77,955 on Coinbase, marking a 3% decline over the past 24 hours, despite a 0.7% increase over the week. Bitcoin had peaked at $81,479.50 late Thursday night before experiencing a significant downturn.

      Warsh's speech indicated a readiness from the Fed to raise interest rates rather than cut them, which contributed to the sell-off across various risk assets. Gold prices fell by 2.4%, while both the S&P 500 and Nasdaq Composite also traded lower after initially gaining. Warsh emphasized the need for the Fed to focus on inflation, which currently exceeds the target rate of 2%, stating that the central bank has 'work to do' to ensure inflation moves toward its objective.

      The decline in Bitcoin's value occurred in two stages, with a notable drop following Warsh's remarks. Ether also experienced a similar decline, falling to $2,442.56, down 3.2% for the day. The broader market sentiment reflected caution, as traders awaited clearer guidance from the Fed regarding future monetary policy. The Crypto Fear & Greed Index indicated a reading of 73, suggesting a state of greed among investors prior to the afternoon's price drop.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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