Strong Dollar And High Rate Hike Odds: Bitcoin Crash Incoming?

Federal Reserve Chair Kevin Warsh delivered quite a hawkish speech at the Jackson Hole meeting on Friday, August 28, 2026. Warsh put substantial emphasis on inflation risks, which continues to remain above the Federal Reserve’s 2% target. His statements have led to increased expectations of an interest rate cut later this year. The US dollar is also gaining momentum, which gold was at its lowest during a Jackson Hole meeting. An interest rate hike and a stronger dollar could lead to Bitcoin (BTC) facing another price crash.

Will Higher Interest Rates And A Stronger Dollar Crash Bitcoin’s (BTC) Price?

Bitcoin’s (BTC) recent rally to the $80,000 price level was fueled by two major events. Firstly, President Trump held a cryptocurrency event in the White House which may have elevated investor sentiment. During the event, Trump stated that the US plans to purchase a large amount of Bitcoin (BTC) and other cryptocurrencies. The second event was the US Treasury’s decision to increase its bond buybacks. The buybacks led to increased liquidity which may have trickled into the cryptocurrency market.

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