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

Bitcoin (BTC) slipped to around $78,442 on Bitstamp, marking a roughly 1% decline as markets processed comments from Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium.

Fed Chair’s inflation outlook

Warsh emphasized that recent lower CPI and PCE readings do not signal a meaningful improvement in underlying inflation trends. He reiterated the Fed’s 2% target and signaled a move away from forward guidance, describing it as a legacy practice that has “overstayed its welcome.”

Market reaction

U.S. equities edged higher, with the S&P 500 and Nasdaq Composite each up about 0.5% following the remarks. Bitcoin, however, remained confined to a narrow range near $80,000, hovering below the $83,000 level that analysts view as a key resistance point.

Derivatives and price support

Analysis from QCP Capital highlighted the importance of derivatives markets. Continued price gains above $83,300 would require funding rates and open‑interest growth to stay restrained, indicating a market structure supported by spot participation rather than aggressive leverage.

Technical outlook

Recent on‑chain data shows a thick resistance zone between the current spot price and $86,000. To sustain an uptrend, Bitcoin would need to break above a downward‑sloping trend line and defend the 50‑week exponential moving average near $77,250.

Performance snapshot

Despite the dip, BTC/USD was up 26.35% month‑to‑date, delivering its strongest August performance since 2017, according to CoinGlass data.