Bitcoin Drops Below $77,000 as $478M in Leveraged Positions Were Liquidated

Bitcoin price fell below $77,000 after Fed Chair Kevin Warsh delivered a hawkish speech at Jackson Hole, warning that inflation remains too high. BTC dropped to $76,845, wiping out heavily leveraged positions and pushing total crypto liquidations to $478 million.

The sharp move came as traders worried that higher rates could keep pressure on risk assets.

Warsh Keeps Inflation Fight in Focus

During the speech, Kevin Warsh made it clear that inflation remains the Fed’s main concern. He pointed to PCE and CPI inflation, saying both are still above the Fed’s 2% target.

While recent inflation data was better than expected, Warsh said it was not enough to show that inflation is improving in a lasting way.

Warsh said, “They do not tell me that underlying trends have meaningfully improved.” 

He added that the Fed needs to be confident that inflation is moving toward its target. Otherwise, policymakers still have more work to do.

However, the comments pushed traders to rethink expectations for future interest rates, putting fresh pressure on Bitcoin and other risk assets.

Bitcoin Liquidations Reach $478M

This sharp Bitcoin move has also triggered heavy losses among leveraged traders.

According to coinglass data, around 95,731 traders were liquidated over the past 24 hours, with total liquidations reaching about $485.86 million. While the long traders accounted for roughly $368 million of the liquidations.