Bitcoin Drops to $78.4K as Fed's Warsh Downplays Soft Inflation

Key facts

• Bitcoin fell to around $78,400 after Fed Chair Kevin Warsh downplayed soft inflation data.
• Bitcoin was trading at about $77,765 on Aug. 31, down 0.6% over the past week.
• Bitcoin pulled back from a recent high of $81,455.
• Warsh spoke at the Jackson Hole economic symposium.
• Fed data shows annual PCE inflation at 3.7%, six-month annualized rate at 4.1%.
• CME FedWatch probability of September rate hike rose from 35.4% to 57%.
• Fed meeting scheduled for Sept. 15-16.
• Over $384 million in crypto positions liquidated in 24 hours, including $310 million in long positions.
• Ethereum fell 2.1% to $2,400.
• U.S. spot Bitcoin ETFs attracted $2.8 billion in eight sessions through Aug. 26; BlackRock's IBIT accounted for $2.02 billion.
• Bitcoin climbed from $62,000 to $80,000 during August.
• U.S. Treasury to double maximum size of long-term buybacks from Sept. 9.
• Stablecoins and tokenized assets discussed at Jackson Hole by central banks, IMF, BIS.
• BIS warned stablecoins could pull deposits from banks.
• Next catalyst: U.S. economic data and Fed comments before September meeting.