Fed Chair Kevin Warsh signals possible rate hike, Bitcoin risks correction

Cointurk2026/08/31 06:30

By:Cointurk

Bitget offers one-stop trading for cryptocurrencies, stocks, and gold. Trade now!

A welcome pack worth 6200 USDT for new users! Sign up now!

Federal Reserve Chair Kevin Warsh delivered a decidedly hawkish address at the Jackson Hole meeting on Friday, August 28, 2026. Warsh emphasized persistent inflationary pressures, noting that inflation continues to run above the Fed’s 2% target. His remarks have fueled speculation that the central bank may opt for an interest rate hike later in the year.

Rising dollar and interest rates put pressure on Bitcoin

Alongside monetary policy concerns, the US dollar has gained momentum, reaching fresh highs at the Jackson Hole meeting. Gold prices, meanwhile, have dropped to their lowest levels historically seen during these gatherings. Analysts suggest that a further rate increase, combined with a stronger dollar, could present fresh headwinds for Bitcoin (BTC), potentially resulting in another price retracement.

Bitcoin recently rallied to the $80,000 threshold, supported by several key developments. A recent cryptocurrency event at the White House, hosted by President Trump, appeared to boost investor confidence. During the event, Trump revealed plans for the United States to purchase a significant amount of Bitcoin and other digital assets.

During the White House event, President Trump outlined plans for large-scale purchases of Bitcoin and other cryptocurrencies by the US government, drawing heightened attention from digital asset investors.

Another notable factor driving Bitcoin’s surge was the US Treasury’s decision to increase bond buybacks. This move injected liquidity into financial markets, which likely found its way into the cryptocurrency sector.

ETH

SOL

BSC

ROBINHOOD

PAY

USDT

↓

RECEIVE

AAPL

The US Treasury, however, is expected to reverse these actions in the future to address budget needs, potentially withdrawing liquidity from Bitcoin and other crypto assets. If this shift coincides with a rate increase, market observers caution that Bitcoin could fall below $70,000 once more.

Factor Current Situation Potential Impact on BTC

Interest Rate	60% probability of 25 bps hike in September 2026	Increased downward pressure
US Dollar	At highs	Reduced demand for crypto hedges
Liquidity	Boosted by bond buybacks	Positive for BTC until reversed

According to CME FedWatch data, there is a 60% likelihood that the Federal Reserve will raise interest rates by 25 basis points in September 2026. This expectation has added to uncertainty in crypto markets.

A strengthening US dollar presents an additional challenge to Bitcoin’s upward momentum. Investors typically seek assets such as Bitcoin and gold as alternatives during periods of dollar weakness, but a firm dollar reduces this demand.

Market analysts suggest that a strong dollar environment could curb the use of Bitcoin and other assets as conventional hedges against US currency volatility.

The interaction between monetary policy, liquidity conditions, and currency strength continues to shape the outlook for Bitcoin and the broader cryptocurrency market.

Mini dictionary: Jackson Hole meeting, an annual economic symposium hosted by the Federal Reserve Bank of Kansas City, where global central bank leaders, economists, and policymakers discuss key financial and economic issues.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

Understand the market, then trade.

Bitget offers one-stop trading for cryptocurrencies, stocks, and gold.

Trade now！

The "New Federal Reserve Newsletter" pointed out that before the release of the CPI, Waller suggested the possibility of a 50-basis-point rate hike in December, and so far, no other Fed officials have publicly responded. In addition to a single 50-basis-point hike, the Fed may also choose to signal consecutive rate hikes in December and January. Wall Street generally believes that inflationary pressures remain stubborn, further strengthening the case for a rate hike in December, though a 50-basis-point increase is not a consensus. The market is concerned about whether the Fed will extend the tightening cycle.

华尔街见闻•2026/11/10 18:25

CPI Deals a Blow to US Bonds! 2-Year Yield Surges Over 20 Basis Points Intraday, Gold and Silver Plunge

After the release of the CPI, traders began to expect a lower likelihood of a 50 basis point rate hike in December; this year’s Federal Reserve voting member Logan stated that a faster pace of rate hikes may be needed this winter, with at least two more 25 basis point hikes required before pausing. Subsequently, the rise in U.S. Treasury yields continued to widen, with the 10-year yield climbing back above 5.0% and rising more than 10 basis points intraday; spot gold once fell over 3%, while spot silver at one point dropped more than 4%.

华尔街见闻•2026/11/10 18:25