Bitcoin slips below US$80,000 after Kevin Warsh’s inflation vow

Published Mon, Aug 31, 2026 · 12:40 PM

Bitcoin slipped back below US$80,000 on Friday (Aug 28) after Federal Reserve Chair Kevin Warsh pledged to bring inflation back to target, pushing short-term Treasury yields higher and cooling some of the week’s risk-on momentum.

The move was modest rather than a reversal of the broader crypto rebound. Warsh said financial conditions are not restrictive and stressed that inflation must move clearly toward the Fed’s target, reinforcing expectations that policy could stay tighter for longer. Bitcoin eased with other rate-sensitive assets but remained well above levels seen earlier this month.

The crypto market is still in a limbo with no clear directional views in sight after a short squeeze due to a record liquidation in leveraged bearish bets on digital assets last week.

The open interest for Bitcoin futures, which makes up the majority of crypto trading, has not seen a significant recovery after the wipeout, according to data from Coinglass. 

“Despite a slight hawkish tilt from Warsh, the market is digesting all of this relatively well so far,” said Jasper De Maere, OTC trader at Wintermute. “For me, the speech fell in line with expectations.” 

Bitcoin dropped as much as 4 per cent to US$76,871, and is now little changed on the week. It registered a gain of 23 per cent in the previous one. The price is still down about 40 per cent from an all-time high of around US$126,000 last October.