Bitcoin Is Back Above $80,000. Now Fed Chair Kevin Warsh Could Decide Whether The Rally Keeps Going.

Bitcoin climbed back above $80,000 Thursday as crypto traders turn their attention to Federal Reserve Chair Kevin Warsh's closely watched Jackson Hole speech.

The cryptocurrency was trading above $80,000 on Thursday at 2:16 p.m. ET after a sharp advance over the past 10 days. The rally followed steps by the Treasury Department to ease pressure on longer-term government bonds, while investors are now waiting to see whether Warsh takes a tougher stance on inflation when he speaks on Friday.

Warsh will address the Kansas City Fed's annual economic policy symposium with inflation still well above the central bank's 2% goal. The Bureau of Economic Analysis said Wednesday that the personal consumption expenditures price index rose 3.7% from a year earlier in July, while core PCE, which excludes food and energy, increased 3.3%. Both measures rose 0.2% from June.

The Fed has kept its benchmark interest rate at 3.50% to 3.75% in recent months, but several policymakers are warning that inflation remains too high. Kansas City Fed President Jeffrey Schmid said Thursday that rates may not be restrictive enough, while Cleveland Fed President Beth Hammack also indicated she was prepared to act against persistent price pressures, Reuters reported.