Bitcoin Plunges to $77,000 Range as September Rate Hike Odds Surge After Fed Chair's Speech

The cryptocurrency market traded broadly softer on the morning of the 31st. Bitcoin changed hands at approximately ¥12.4 million (approximately $77,000) per BTC, down 0.7% over the past 24 hours, while Ethereum was down 1.7% at around ¥380,000 (approximately $2,400), and XRP fell 2.8% to the upper ¥210 range. Selling pressure that began the prior weekend remained persistent, underscoring a clear shift toward caution among investors.

The dominant catalyst was Fed Chair Kevin Warsh's speech at the Jackson Hole Symposium on August 28. He explicitly stated that the PCE inflation target of 2% is a "fixed target" and expressed the view that monetary policy should remain focused squarely on price stability. Markets interpreted the remarks as hawkish, rapidly strengthening expectations for a September rate hike.

Looking at actual price action, Bitcoin had been trading around $80,000 during the day on the 28th before selling intensified late at night, breaking below $78,000 in the early hours of the 29th. On Bitstamp, the cryptocurrency fell as low as $78,442 at one point. While dip-buying subsequently supported a recovery back to the $79,000 range, sellers regained the upper hand in the early hours of the 31st, pushing Bitcoin back down to the $77,000 level.