Warsh Vows to "Definitively Rein In Inflation"…Bitcoin Loses $80,000 Level

Bitcoin surrendered the $80,000 level once again in the wake of Federal Reserve Chair Kevin Warsh's Jackson Hole speech. Warsh's pledge to definitively return inflation to target signaled a cautious stance on monetary easing, dampening risk-asset sentiment.

According to Bloomberg on the 29th (local time), Bitcoin fell nearly 4% from the previous day to as low as $76,871 (approximately 110 million won). The cryptocurrency gave back the $80,000 level it had reclaimed last week.

The decline was directly triggered by Warsh's first Jackson Hole keynote address. "Current financial conditions are not restrictive," he said, adding that he would "definitively return inflation to target." He downplayed recent Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE) readings that came in below expectations, saying they "do not indicate a meaningful improvement in the underlying trend."

Markets interpreted the remarks as a cautious signal on monetary easing. Short-term U.S. Treasury yields rose, applying selling pressure across risk assets including Bitcoin. U.S. equities, however, avoided losses as Warsh made positive remarks about corporate earnings and growth in the artificial intelligence (AI) sector. The S&P 500 and Nasdaq Composite both rose about 0.5% on the day.