Bitcoin holds steady as Federal Reserve warns of persistent inflation

Bitcoin (BTC) is trading at $78,268, up 0.98% on the day. The asset remains below its near-term moving averages, while continuing to hold above its long-term trend levels.

Highlights

• US Federal Reserve commentary signaled persistent inflation and the likelihood of continued restrictive monetary policy, raising expectations for higher interest rates.
• The Lazarus Group linked to North Korea moved 244.148 BTC worth $19.42 million, increasing scrutiny on flagged crypto wallets and compliance risks.
• Bitcoin trades below key moving averages short term with mixed momentum signals, projected to fluctuate between $76,118 to $81,861 in the coming days.

US monetary policy signals and North Korean activity stoke crypto volatility

Comments from Federal Reserve Governor Kevin Warsh at the Jackson Hole Symposium on August 28 signaled that US inflation remains elevated and monetary policy could stay restrictive, which may pressure risk assets like Bitcoin by raising expectations for higher interest rates, according to Economictimes Indiatimes. This macro backdrop introduces volatility for crypto markets as investors reassess the appeal of Bitcoin amid shifting monetary policy. Separately, Tronweekly reported that North Korea-linked Lazarus Group moved 244.148 BTC, worth $19.42 million, from labeled wallets, drawing additional attention to compliance risks and the traceability of flagged coin holdings.