Bitcoin steadies below $80k as investors await Warsh speech

Bitcoin experienced a slight decline on Friday, as investors braced for a significant address by Federal Reserve Chair Kevin Warsh. The leading cryptocurrency fell by 0.4% to $79,259.3, hovering near its three-month peak of over $81,000. Amid the dip, analysts anticipate a potential 2% increase in Bitcoin's value this week. Since the beginning of the week, optimism over regulatory advancements in the U.S. and Treasury intervention in the bond market encouraged investments in assets such as Bitcoin and gold.

Additionally, a rally in technology stocks provided further support for cryptocurrencies, following strong earnings from Nvidia.

However, the uncertainty surrounding the U.S.-Iran conflict and lingering concerns about rising interest rates dampened overall risk appetite. Federal Reserve Chair Warsh is scheduled to deliver his speech at the Jackson Hole Economic Symposium, and his remarks are expected to provide crucial insights into the central bank's plans for interest rate adjustments.

So far, Warsh has been cautious about disclosing the Fed's intentions, but earlier hints indicated the bank's commitment to achieving a 2% annual inflation target. Recent PCE price index data revealed that prices remained well above the 2% target in July, prompting a slight increase in market expectations for a potential Fed rate hike.

As expectations for Warsh's speech loomed over the weekend, Bitcoin and other major cryptocurrencies traded sideways. Ether, the second-largest cryptocurrency, saw a 0.3% rise, reaching $2,505.33, while XRP experienced a 1.4% decline. Solana and Cardano also experienced minor declines, while BNB dropped 0.5%. Among meme coins, Dogecoin experienced a 1.4% decrease, while $TRUMP surged more than 15%. The report was contributed by Vahid Karaahmetovic.