Bitcoin slips below $80,000 after Kevin Warsh’s inflation vow

Bitcoin slipped back below $80,000 on Friday after US Federal Reserve Chair Kevin Warsh pledged to bring inflation back to target, pushing short-term Treasury yields higher and cooling some of the week’s risk-on momentum.

Warsh’s comments also prompted traders to sharply raise their bets on a rate hike. The probability of a hike rose to 57%, from 30% before his speech in Wyoming, according to official CME FedWatch data.

Bitcoin fell as much as 4% to $76,871 and was little changed for the week, after gaining 23% in the previous week. The cryptocurrency remains down about 40% from its all-time high of around $126,000 reached last October.


Over the past 24 hours, Bitcoin was up 0.77%, while Ethereum fell 0.38% to around $2,447. Among major altcoins, BNB, XRP, Solana, Tron, Hyperliquid, Dogecoin and Cardano fell by up to 2.53%.

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Prateek Gupta, Head of Business at Mudrex, said September rate-hike odds had jumped to 60%, weighing on Bitcoin and gold. Bitcoin now needs a monthly close above $80,000 to regain momentum, while $77,000 remains the key level to hold, Gupta said.

The global crypto market capitalisation remained flat at $2.63 trillion, according to CoinMarketCap. More than 6,427 dormant BTC worth $507 million moved in August, including coordinated batches from wallets dating back to 2014, according to the CoinDCX Research Team.

CoinSwitch Markets Desk said BTC had stabilised after last week’s rejection from the three-month high of $81,455, suggesting buyers remained active around the $77,000-$78,000 region. The broader backdrop remained constructive, supported by sustained institutional demand and an extended streak of US spot Bitcoin ETF inflows.

Over the past week, Bitcoin gained 1.92%, while Ethereum fell 0.32%. Among major altcoins, BNB, XRP, Tron, Dogecoin and Cardano corrected by up to 10.53%, while Solana and Hyperliquid gained 9.29% and 3.82%, respectively.

Bitcoin is trading near $77,700, leaving the $77,000-$76,000 zone as a key support area. A decisive move below this range could increase selling pressure and trigger further profit-taking, said Riya Sehgal, Research Analyst at Delta Exchange.

Sehgal said the decline came after Bitcoin’s strong August advance, which took the asset above $81,000. The latest pullback also came alongside a shift in institutional flows. US spot Bitcoin ETFs posted $201.9 million in net outflows on August 28, ending a nine-session inflow streak that had attracted approximately $2.8 billion.

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Here is what experts say

Nischal Shetty, Founder, WazirX: Institutional demand remained strong, with US spot Bitcoin ETFs attracting $924.48 million, despite Friday’s $201.81 million outflow. Ethereum ETFs added $824.42 million. Bitcoin traded near $77,728 after briefly exceeding $81,000, while Ethereum held around $2,416 amid its sustained inflow streak.

Avinash Shekhar, Co-Founder & CEO, Pi42: Bitcoin’s move between $78,000 and $79,000 suggests the market is entering a consolidation phase after a strong recovery, with $80,000 emerging as the key level to watch. A sustained breakout above this zone could reopen the path for another leg higher, while continued rejection may keep BTC range-bound in the near term.

Vikram Subburaj, CEO, Giottus: The market has surrendered the $80,000 level following Fed Chair Kevin Warsh’s hawkish Jackson Hole remarks. Investors should avoid aggressive positioning while macro uncertainty remains elevated. Staggered accumulation and controlled leverage are preferable, with $77,000 support and $79,400-$80,800 resistance the immediate Bitcoin levels to monitor.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)