Fed Chair’s hawkish stance jolts crypto and gold markets

Fed Chair Warsh’s hawkish inflation comments caused Bitcoin and XRP to dip, gold to fall sharply, and markets to price in a possible September rate hike. Bitcoin rebounded, while XRP and gold stayed under pressure.

Federal Reserve Chair Kevin Warsh’s inflation-focused remarks at the Jackson Hole Symposium triggered notable market reactions. Bitcoin briefly dipped below $79,000 before rebounding, staying within its rising channel. Momentum indicators suggested cooling, but not oversold, conditions. XRP saw a sharp 5% drop to $1.38, as Warsh’s hawkish stance led market participants to price in a possible September rate hike. Gold and other precious metals also fell, with spot gold dropping over $120 intraday to $4,480 per ounce, as traders increased bets on higher rates. Warsh emphasized the Fed’s commitment to its 2% inflation target, stating that inflation remains above this level and that the central bank "still has work to do." Despite initial volatility, Bitcoin quickly recovered, buoyed by recent positive regulatory news and Treasury actions. This episode highlights the sensitivity of risk assets to monetary policy signals.