Bitcoin failed to make a decisive break above $80,000 as traders digested Fed Chair Kevin Warsh’s Jackson Hole keynote speech, which remained wary of US inflation trends.
Bitcoin (BTC) saw volatility after Friday’s Wall Street open as markets reacted to US Federal Reserve chair Kevin Warsh’s comments on future monetary policy.
Data from TradingView showed BTC/USD dipping to $78,442 on Bitstamp in volatile trading conditions, down around 1% at the time of writing.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
In his first keynote speech at the annual Jackson Hole Symposium, Warsh delivered a cautionary tone on inflation, committing to the Fed’s 2% target. The Fed chair doubled down on an earlier pledge to reduce the scope of hints over future policy that the Fed offers to markets, avoiding forward guidance altogether and stating that it would not make a reappearance in the future.
“Forward guidance as a regular practice was adopted by my colleagues and me during the Global Financial Crisis. It was essential at the time, and we introduced it with much fanfare. But, as with other legacies of crises past, I believe that the practice has overstayed its welcome,” he stated.
Warsh further dismissed recent lower-than-expected inflation prints in the Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE) index as a sign of a downtrend being in progress.
“Each of these broad inflation measures have fallen significantly from their highs of a few years ago, but progress through the past couple of years has been more modest, and while this summer’s PCE and CPI readings were better than expected, they do not tell me that underlying trends have meaningfully improved,” he continued.
US stocks avoided losses on the back of Warsh’s words, which also included a complimentary view of business performance and AI sector growth. Both the S&P 500 and the tech-heavy Nasdaq Composite Index were up around 0.5% at the time of writing.
BTC price action thus continued to gyrate around the $80,000 mark, acting in a narrow intraday range ahead of the August monthly close.
Previously, Cointelegraph reported on expectations for the monthly close, with analysis demanding that BTC/USD break above a downward-sloping trend line and defend the 50-week exponential moving average near $77,250 to sustain the uptrend.
BTC/USD one-day chart with 50-month EMA. Source: Cointelegraph/TradingView
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