Bitcoin Slides to $77,557 as Jackson Hole Remarks Rekindle Rate-Hike Fears

Bitcoin sold off on Friday after briefly extending this week's rally, as markets recalibrated interest-rate expectations following comments from Federal Reserve Chair Kevin Warsh at Jackson Hole. CoinDesk said bitcoin dipped to $76,877 during the session after Warsh argued inflation is not slowing fast enough and that the Fed "has more work to do" on price pressures. CME FedWatch showed traders lifting the implied odds of a September rate hike to 55.7%, up from 35.4% a day earlier. Bitcoin quickly reversed from an overnight peak of $81,455, stalled again in a familiar resistance band, and finished at $77,557, down 3.39% on the day. Liquidations accelerate as leverage unwinds The repricing rippled through leveraged positions. CoinGlass data showed about $481 million in crypto liquidations in the 24 hours before and after the speech, with more than $360 million tied to long positions, suggesting momentum chasers were forced out as prices rolled over. Resistance holds; key supports come into focus The pullback occurred near the $81,000–$82,500 area, a zone that has repeatedly capped upside attempts this year and again marked a short-term turning point. If losses deepen, CoinDesk highlighted $73,670–$75,157 as the first major support region. A daily close below that range could put the 50-week moving average and the breakout structure in place since June at risk. For now, the move still looks like consolidation rather than a decisive trend reversal. Bitcoin remains within the broader upswing from the June low of $68,858, with upside momentum simply fading at higher levels. Longer-term optimism largely intact Prediction markets have not meaningfully shifted toward a bearish outlook. Myriad's "Bitcoin's Next Move" market currently prices a 77% probability of bitcoin rising toward $84,000, versus a 23% probability of a drop toward $55,000. Since trading began in late February, leadership has flipped several times, but bullish odds have widened since the start of this month, and Friday's decline did not change the split. ETF inflows and Treasury buybacks support the macro backdrop Sentiment has also been underpinned by continued inflows into U.S. spot bitcoin ETFs. As of Wednesday, the products recorded eight straight sessions of net inflows totaling $2.8 billion, the longest streak since April. Separately, the U.S. Treasury said it will at least double the size of its long-term Treasury buyback program beginning September 9. CoinDesk suggested the step could bolster the long-end of the bond market, pressure long-term yields lower, and weigh on the dollar—reinforcing the macro tailwinds that helped bitcoin climb this month from roughly $62,000 to $80,000. Near term, markets remain focused on inflation data and Fed communication. Warsh did not outline a specific rate path, stressing instead the Fed will not claim victory until inflation makes clear, sustained progress toward its target. That leaves bitcoin vulnerable to sharp swings around each upcoming inflation release ahead of the next policy decision.