Warsh says inflation is still a concern
Federal Reserve chair Kevin Warsh addressed the U.S. inflation, saying it still remains a concern despite measures taken to navigate higher prices. CBS News' Kelly O'Grady reports.
Bitcoin's price dipped to $78.4K on Friday, as investors weighed remarks from Federal Reserve Chair Kevin Warsh during his keynote speech at the Jackson Hole Symposium. The speech brought uncertainty to traders, who were wary of inflation trends in the United States. Warsh delivered a cautious tone, remaining committed to the Federal Reserve's 2% inflation target and avoiding forward guidance on future monetary policy.
The Fed chair dismissed recent lower-than-expected inflation readings in the Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE) index, stating that progress in curbing inflation has been modest in recent years. Despite these comments, US stocks managed to avoid losses, with both the S&P 500 and the tech-heavy Nasdaq Composite Index gaining around 0.5%.
Bitcoin's movement remained closely tied to the $80,000 level, oscillating within a narrow range ahead of the August monthly close. On-chain data revealed a significant resistance zone between the current price and $86,000, which may have hindered upward momentum. Trading firm QCP Capital noted that for Bitcoin to break higher, derivatives markets would need to provide support through controlled funding rates and steady open interest growth.
As of the writing, Bitcoin was up 26.35% on the month, marking its best August performance since 2017.
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