Bitcoin Magazine

Bitcoin Drops Before Shrugging Off Fed Chair’s Inflation Comments 

Bitcoin dropped, then popped after Federal Reserve Chair Kevin Warsh gave his first major speech as head of the U.S. central bank and said he had “more work to do” to fight inflation. 

The leading cryptocurrency was recently trading for $79,474 after dropping as low as $78,630 before quickly rising again. 

Bitcoin has typically done well in a low interest rate environment but the Federal Reserve has been reluctant to lower borrowing costs due to sticky inflation in the world’s biggest economy. 

“But on the price-stability side of our mandate, the numbers are more concerning,” Warsh said after talking about employment. 

He added: “We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do.”

Bitcoin has in the past dropped on news that the Federal Reserve thinks inflation is too high because it means less chance of a rate cut. Following Warsh’s speech, traders priced in a 50% chance of rate hike in September. 

But Bitcoin has appeared to — at least for now — shrug off the speech. 

Bitcoin’s started surging last week after the U.S. Treasury Secretary Scott Bessent announced the department would double the size of its long-dated bond buybacks. 

The news sent yields down lower, and the dollar slid while non-yielding assets like bitcoin and gold jumped. 

Positive regulatory news also helped the coin: President Donald Trump last week said that the long-awaited crypto Clarity Act was a “very, very powerful” piece of legislation, and urged lawmakers to get it over the line. 

The proposed law will establish a framework for distinguishing between digital assets that are securities, commodities or payment stablecoins — legislation that the crypto industry has long called for. 

The Federal Reserve Bank of Kansas City is on Friday holding the annual event at Jackson Hole, Wyoming, where central bankers, Federal Reserve officials, policymakers and academics will gather to discuss “Financial Innovation: Implications for Payments and Policy.”

According to the Federal Reserve Bank of Kansas City website, this year’s event will touch on how “recent years have seen a dramatic increase in innovation in financial intermediation and payments,” including new technologies such as “cryptocurrencies and stablecoins.” 

This post Bitcoin Drops Before Shrugging Off Fed Chair’s Inflation Comments  first appeared on Bitcoin Magazine and is written by Mathew Di Salvo.

Bitcoin Magazine

Bitcoin Barely Budges as Fed Keeps Interest Rates Unchanged

Bitcoin was trading higher on Wednesday — but only slightly — after the Federal Reserve decided to keep interest rates still. 

The leading cryptocurrency was recently priced at close to $64,402 per coin, after moving up by nearly 1% in the hour following the announcement. 

As expected, the U.S. central bank left the federal funds rate in the 3.50%-3.75% range. Three of the 12 members of the policy-setting Federal Open Market Committee “preferred” a quarter-percentage-point hike at this meeting. 

BREAKING:  Federal Reserve officially leaves interest rates unchanged at 3.5-3.75%. pic.twitter.com/mkMnSee2ou

— Bitcoin Magazine (@BitcoinMagazine) July 29, 2026

Speaking to the press following the announcement, the Fed’s new Chair, Kevin Warsh, revealed little about where the central bank would go next. 

“The Fed’s on the case,” he said. “I’ve been heartened by the reception I’ve received. We’re committed as ever to deliver.” 

He added that the July rate decision was “a rigorous review of the economic situation.”

“I wouldn’t characterize what we did as anything like a pause,” he said. “I would characterize what we did as a rigorous review of the economic situation. I would characterize what we did as a review of the big, hard questions.”

Warsh, who took over in May, has said he has “no tolerance” for inflation that has been running above the central bank’s target for more than five years.

Bitcoin has typically performed well in a low-interest rate environment, and crypto investors have been hoping the Federal Reserve would cut rates to boost digital assets. 

President Donald Trump since taking office has pushed for lower interest rates, and clashed with ex-Fed chair Jerome Powell over the matter. 

For now, Warsh doesn’t seem like he’ll be going in that direction as sticky inflation continues to bother Americans. 

The Federal Reserve started aggressively raising rates in 2022 in a bid to control 40-year-high inflation spurred by the COVID-19 pandemic. Bitcoin was hit by the tightening.

Then, in 2024, the central bank repeatedly cut rates. It has been hesitant to lower them since the end of 2025. 

This post Bitcoin Barely Budges as Fed Keeps Interest Rates Unchanged first appeared on Bitcoin Magazine and is written by Mathew Di Salvo.