Bitcoin Steadies Near $80,000 Ahead of Jackson Hole Remarks From Fed's Warsh

Bitcoin hovered around $80,000 on Wednesday as markets turned their attention to Federal Reserve Chair Kevin Warsh's keynote address at the Jackson Hole symposium, according to CoinDesk. The annual Kansas City Fed gathering opened Wednesday, with Warsh set to speak Friday morning. Inflation remains well above the Fed's 2% target while long-term borrowing costs sit near multi-year highs. The central bank has kept its benchmark rate range at 3.5%3.75% for the past several months. Mark Connors, CIO at Risk Dimensions, said Warsh is likely to keep the door open to further rate increases, though he does not expect a hike before the midterm elections. July's PCE inflation printed at 3.7%, with higher energy prices tied to the Iran conflict cited as a contributing factor. Hashdex CIO Samir Kerbage argued that Bitcoin tends not to trade directly on the September FOMC decision. Instead, he said it tracks shifts in global liquidity and the long-end of the yield curve, echoing the drivers that often underpin gold. He pointed to last week's move after 30-year U.S. Treasury yields reached a 19-year high. The U.S. Treasury then announced increased purchases of long-term Treasuries, after which Bitcoin climbed. Kerbage characterized the rally as "primarily a liquidity event." This year's Jackson Hole agenda centers on financial innovation, payments and policy, with discussions focused on stablecoins, tokenized deposits and faster settlement systems. Kerbage said that if Warsh frames these technologies as core building blocks of the financial system rather than risks to be contained, the ripple effects could go beyond Bitcoin. In that scenario, smart-contract networks and protocols that facilitate tokenized payments and settlement could be among the most direct beneficiaries.