Bitcoin Gained 26% in August, But Fed’s Kevin Warsh Says It Could Be Over

Bitcoin gained about 26% in a month. Federal Reserve Chairman Kevin Warsh just told the world’s finance chiefs why that run may be ending.

Cheap money is over, he argues. Growth is picking up, and cash is chasing new projects. That pushes interest rates up, not down.

Warsh Says the Easy Money is Gone

Warsh has run the Fed for 100 days. He spoke on Monday at the Group of 20 (G20) meeting in Asheville, North Carolina. It gathers finance ministers and central bankers.

For years, economists blamed too much idle cash and too few good projects. That kept borrowing cheap. Warsh says that world is finished. He made the same case at Jackson Hole on Friday.

“It wasn’t so long ago … when economists and policymakers were speaking of secular stagnation and a global saving glut,” said Warsh.

Money is now pouring into artificial intelligence, he said. He cannot call today’s conditions tight. Inflation still runs at 3.7% a year.

Bessent Says He Cannot Fight It

Treasury Secretary Scott Bessent sat beside him on Monday in Asheville. On August 19, Bessent doubled the size of Treasury’s bond buybacks to at least $4 billion each. A buyback means the government buys back its own long-term debt.

Critics said the real goal was to push borrowing costs down. Bessent denies it.