Federal Reserve Chair Kevin Warsh delivered a hawkish speech at Jackson Hole on August 28, 2026, emphasizing inflation risks above the 2% target. His remarks increased expectations of an interest rate cut, while the US dollar strengthened and gold hit a low during the meeting. Bitcoin recently rallied to $80,000, fueled by President Trump’s White House crypto event and US Treasury bond buybacks that boosted liquidity. However, CME FedWatch data shows a near 60% chance of a 25 basis point rate hike in September 2026. A stronger dollar and potential rate hike could push Bitcoin below $70,000.
Federal Reserve Chair Kevin Warsh delivered a hawkish speech at the Jackson Hole meeting on Friday, August 28, 2026. He placed substantial emphasis on inflation risks, which 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, while gold was at its lowest during the Jackson Hole event.
An interest rate hike and a stronger dollar could lead to Bitcoin facing another price crash. Bitcoin’s recent rally to $80,000 was fueled by two major events.
President Trump held a cryptocurrency event in the White House, stating that the US plans to purchase a large amount of Bitcoin and other cryptocurrencies. The second event was the US Treasury’s decision to increase its bond buybacks, which led to increased liquidity that may have trickled into the cryptocurrency market.
The US Treasury will eventually need to refill its pockets, and when that happens, liquidity could revert from Bitcoin and the larger cryptocurrency market. Such a move could lead to a price correction for crypto assets.
Pair that with a potential rate hike, and we could see Bitcoin fall below $70,000 once again. CME FedWatch data shows that there is a near 60% chance that interest rates will be raised by 25 basis points in September 2026.
A stronger dollar also poses a threat to Bitcoin’s gains. A strong US dollar means fewer hedges, as people often flock to Bitcoin and gold to hedge against the dollar, but they may not do so when the dollar is strong.
