Bitcoin and Ethereum Drop After Kevin Warsh Inflation Warning

Cryptocurrency prices experienced a sharp correction after Kevin Warsh spoke at the Jackson Hole symposium. Bitcoin fell below $78,000 and Ethereum declined to approximately $2,430 following Warsh's assessment that inflation remains above the Federal Reserve's 2% target. He suggested that monetary policy could remain restrictive if price pressures persist.

These remarks triggered a rise in Treasury yields, which pressured risk assets and led to the liquidation of approximately $488 million in crypto positions. Over $360 million of those liquidations were leveraged long positions.

Despite the immediate market downturn, institutional interest remained positive. Crypto ETFs recorded $482.13 million in inflows on August 25, with roughly $310 million entering Bitcoin and $172 million entering Ethereum.