Fed Chair Warsh Downplays Inflation Cooling, Bitcoin Drops Below $80K

Bitcoin failed to break through the $80,000 level, and BTC/USD fell to $78,442 on Bitstamp after a cautious-toned speech by Fed Chair Kevin Warsh at Jackson Hole, down about 1% on the day. In his remarks, Warsh reiterated the Fed's commitment to the 2% inflation target and downplayed the significance of recent declines in CPI and PCE data. Warsh said that while these broad inflation gauges have fallen notably from their highs of a few years ago, progress over the past two years has been more moderate, and better-than-expected PCE and CPI readings this summer do not indicate a substantial improvement in the underlying trend. He also noted that forward guidance, a routine practice introduced during the financial crisis, is "outdated" and will not be revisited. US stocks were not dragged down by his comments, with the S&P 500 and Nasdaq both rising about 0.5%. On-chain data shows a dense resistance zone between the current spot price and $86,000, capping upside momentum. QCP Capital analysis noted that even if price breaks through, the derivatives market needs to provide support by controlling funding rates and open interest growth, with the key being whether the subsequent move is driven by spot participation or leveraged positioning. As of press time, BTC/USD is up 26.35% month-to-date, marking its best August performance since 2017.