Bitcoin Retreats After Hawkish Fed Remarks, But Traders Remain Bullish Long-Term
Bitcoin fell sharply following inflation warnings from Fed Chair Kevin Warsh, yet prediction markets still favour substantial upside moves over downside scenarios.
Bitcoin dropped to $76,877 on Friday after Fed Chair Kevin Warsh delivered hawkish remarks on inflation at Jackson Hole, pulling back from an overnight high of $81,455. The decline confirmed a resistance zone that has capped several breakout attempts this year.
Warsh's comments that the Fed still has "work to do" on inflation triggered a sharp reassessment of rate expectations, with September rate-hike odds climbing to roughly 56% from about 35% the previous day.
Despite the pullback, traders on prediction markets remain positioned for upside momentum, pricing Bitcoin's next major move at 77% probability toward $84,000, compared with 23% for a drop to $55,000. The prediction market positioning has remained largely unshaken by Friday's selloff.
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