Bitcoin Slides 3% After Fed's Warsh Strikes Hawkish Tone at Jackson Hole

Bitcoin (BTC) slipped 3.23% over the past 24 hours as markets digested a hawkish message from the Federal Reserve at the Jackson Hole symposium. The total crypto market capitalization fell 2.97% in the same period. Ethereum (ETH) declined 2.7%, while XRP dropped 4.89%. Jackson Hole is a global gathering of policymakers and financial market participants focused on macro policy, and it often shapes expectations for the Fed's next moves. This year's address marked Kevin Warsh's first appearance at the event as Fed Chair. He said the central bank still has more work to do on inflation. Warsh pointed to an economy he described as strong and resilient, with unemployment at 4.1% and near a multidecade low. Inflation, though, remains elevated: PCE inflation ran at 3.7% over the past year and 4.1% annualized over the last six months, both well above the Fed's "firm and fixed" 2% target. He added that 54% of the PCE basket components rose at least 3% over the past year, arguing that price pressures remain broad-based. He also suggested financial conditions are not yet "restrictive," citing relatively accommodating lending standards, open credit markets, and tight credit spreads. Looking ahead, Warsh said the Fed remains committed to returning inflation to 2%, with a "predominant focus on prices." He stressed the need to see underlying inflation moving toward target "clearly and at sufficient speed," and warned that otherwise "we have work to do." He further pushed back on markets relying on Fed forward guidance, saying the approach has "overstayed its welcome." After the speech, investors shifted into risk-off mode. Bitcoin retreated from the $80,000 resistance area to $77,812. Long liquidations reached $138 million out of $185 million in total liquidations. ETH fell to $2,420 and XRP to $1.36. Across the broader crypto market, long liquidations totaled $350.94 million out of $467.81 million. For Bitcoin, the next major resistance level is cited at $76,996. CoinPedia said it had previously outlined why a pullback was anticipated and why the move could be viewed as a higher-conviction buying opportunity ahead of the next leg higher.