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Bitcoin stalls below $80,000 as Fed inflation breadth becomes a key test
US spot Bitcoin ETFs pulled in more than $1.1 billion over four sessions through Aug. 27, but the focus shifts to whether disinflation continues.
Bitcoin slipped below $80,000 during Asian trading after touching an overnight high of $81,280, then hovered around the $79,000 area as traders weighed a new macro benchmark highlighted by Federal Reserve Chair Kevin Warsh.
According to CryptoSlate, Warsh pointed to the share of the personal consumption expenditures basket rising faster than 3% over the past year, saying that metric has grown to 54%. He also cited a 49% share above 3% on a six-month annualized basis, and noted six-month annualized headline inflation of 4.1%.
The report said Warsh framed sticky inflation as a clearer hurdle for any shift toward easier policy, while also describing labor market conditions as consistent with full employment and finding few signs of restraint in credit and loan markets. In that context, CryptoSlate noted that Bitcoin, which produces no yield, faces higher competition from cash and short-dated government debt when a tighter policy path stays in play.
CryptoSlate added that while US spot Bitcoin ETFs have absorbed over $1.1 billion over four completed sessions through Aug. 27, Treasury liquidity-support buybacks are expected to start Sept. 9 as part of debt management rather than a direct policy change. The $80,000 level therefore remains a focal point for whether concentrated ETF demand and improved Treasury market functioning can offset the data-driven rate-risk implied by Warsh's inflation breadth standard.
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