The price of bitcoin remains below $80,000 after a strong increase at the end of August. The Federal Reserve has issued warnings about inflation that negatively impact the cryptocurrency market.
The price of bitcoin has experienced a significant slowdown after reaching $80,000 at the end of August. This setback is attributed to recent statements by the Federal Reserve Chairman, Kevin Warsh, who has indicated that inflation is a critical priority and is prepared to act if prices do not decrease soon, according to expansion.com.
After a 23% increase between August 18 and 21, bitcoin reached its peak on August 27. However, the intervention at the Jackson Hole summit has generated expectations of a possible rate hike at the meeting on September 15 and 16, which has heightened risk aversion among investors.
Analysts at UBS highlight that Warsh's speech raised the implied probability of a rate increase to nearly 60%, thus affecting assets like bitcoin, which are sensitive to changes in monetary policy. Since then, the cryptocurrency has remained below $80,000, currently trading at approximately $78,000.
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