Bitcoin, Ethereum and XRP Slide After Fed Chair Warsh Strikes Hawkish Tone at Jackson Hole

Bitcoin fell to $77,901.87, down 3.1% over the past 24 hours, pulling major tokens lower after Federal Reserve Chair Kevin Warsh delivered a hawkish message at the 2026 Jackson Hole Symposium that revived expectations for a September rate increase. Warsh reinforced the Fed's 2% inflation objective as "a firm, fixed target," saying the central bank's mandate is to deliver stable prices "no excuses." He said the U.S. economy appears stronger than anticipated and that credit and loan markets show limited evidence of policy restraint. Warsh described wage growth as moderate but not a dependable signal for future inflation, while noting that medium-term inflation expectations remain largely stable. Rate expectations shifted sharply following the remarks. The probability of the Fed holding rates steady in September dropped from 71% to 50%. The odds of a 25-basis-point hike rose from 30% to 49%. Expectations for a rate cut stayed near zero at 1%. In crypto markets, Bitcoin traded at $77,901.87 (-3.1% in 24 hours) with a market cap of $1.56 trillion. Ethereum fell to $2,444.00 (-3.1%), market cap $294.9 billion. XRP slid to $1.39 (-5.0%), market cap $87.17 billion. Solana declined to $104.81 (-1.9%) but remained up 15.2% over the past seven days. Total crypto market capitalization stood at $2.74 trillion, down 2.2%. Bitcoin also faced technical pressure after rejecting the $81,500 level, with reports that whale sellers built a sizable sell wall near $81,000. Some traders see limited downside from here. Michaël van de Poppe said the market appears to have cleared downside liquidity, with liquidations absorbed and recent lows already taken out. He said he does not expect Bitcoin to keep falling sharply and is now watching for potential relative strength in altcoins if Bitcoin moves sideways. With hike odds nearly back to even and cut expectations effectively removed, crypto markets are adjusting to a less accommodative Fed stance ahead of September's FOMC meeting. Whether the move develops into a deeper correction or proves to be a short-lived liquidity flush may hinge on how investors interpret Warsh's tone in the next sessions.