Why Bitcoin Crashed After Warsh’s Jackson Hole Speech – and What Happens Next

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Bitcoin's rally from under $65,000 to over $81,000 hit a macro setback after Fed Chair Kevin Warsh's hawkish Jackson Hole remarks, raising the risk that higher interest rates and rising Treasury yields could derail the recovery. BTC fell roughly $3,000 hours later to below $77,000, sparking a broad sell-off across stocks, precious metals and risk-sensitive crypto markets and underscoring short-term rate, liquidity and security risks for crypto, DeFi and CEX/DEX activity.
Bitcoin’s rally from under $65,000 to over $81,000 faced its first major macro setback after Fed Chair Kevin Warsh delivered a hawkish message at Jackson Hole on Friday. The bigger question now is whether potentially higher rates and rising Treasury yields can derail the impressive market recovery.
Although BTC remained relatively stable during the speech, it dumped by $3,000 in hours after its conclusion, slipping below $77,000 for the first time in almost a week. The sell-off extended to essentially all other financial markets, including stocks, precious metals, and other risk-sensitive assets.
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