Bitcoin faces a new macro test as Fed Chair Kevin Warsh highlights sticky inflation metrics
Bitcoin has 54% as a new macro number to defend against, the share of the personal consumption expenditures basket that Federal Reserve Chair Kevin Warsh said has risen faster than 3% over the past year.
His Jackson Hole speech turned an abstract argument about sticky inflation into a measurable test, now sitting beside Bitcoin's attempt to regain $80,000.
Bitcoin slipped under $80,000 during Asian trading after reaching $81,280 overnight. Successive Bitcoin market data after the text was published kept BTC below the threshold and moving quickly around $79,000.
Warsh's remarks gave traders a clearer standard for judging the rebound's rate risk.
US-traded spot Bitcoin ETFs absorbed over $1.1 billion over four completed sessions through Aug. 27. Treasury is also preparing larger liquidity-support buybacks, but those operations begin Sept. 9 and are debt management.
The contest around $80,000 is whether concentrated ETF demand and improved Treasury market functioning can absorb volatility while Warsh's breadth test keeps tighter policy live.
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