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Bitcoin slides below $77,000 after Warsh revives higher-rate fears

Traders cut leveraged exposure, with about $487.7 million in crypto liquidations across nearly 97,700 traders in the prior 24 hours.

Reported · Written up by our desk · Market Structure

Bitcoin fell below $77,000 on Friday after Fed Chair Kevin Warsh revived concerns about higher interest rates during remarks at Jackson Hole, according to CryptoSlate. The largest cryptocurrency touched as low as $76,909 before recovering to about $77,712, down roughly 4% over the prior 24 hours.

CryptoSlate reported the move triggered a broader deleveraging in crypto derivatives, erasing nearly $488 million from derivatives traders. CoinGlass data cited in the coverage showed $487.68 million of liquidations across the market, affecting 97,691 traders over the previous 24 hours.

The selloff followed a sharp repricing of Federal Reserve expectations, with traders raising the probability of a September rate increase to about 60% from roughly 35% before Warsh spoke. The article also noted short-term Treasury yields rose and the dollar strengthened after the remarks.

Warsh’s comments argued inflation remains too high even after summer improvements, citing a Fed preferred PCE inflation reading of 3.7% over the past year and a 4.1% annualized pace over the past six months versus the 2% target. The coverage said he also questioned the idea that current borrowing conditions are already restraining demand, noting credit markets show few signs of policy restraint.

Latest closeBitcoin $77,785.62 ▼3.1%

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