Bitcoin dips to $78.4K as Fed’s Warsh downplays softer inflation prints

macro

Bitcoin slid to about $78.4K after former Fed governor Kevin Warsh downplayed recent softer inflation prints, signaling they do not necessarily portend imminent rate cuts. Traders interpreted his comments as a sign that monetary policy could remain tighter for longer, prompting risk-off flows and short-term profit-taking in BTC. The implication for Bitcoin is increased downside pressure and heightened volatility until clearer disinflation evidence or a shift in Fed guidance reduces rate hike uncertainty.

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