Fed Chair Kevin Warsh triggers a $488 million crypto liquidation cascade as rate-hike expectations rise | Market Analysis

Bitcoin slid below $77,000 on Friday after Fed Chair Kevin Warsh revived concerns about higher interest rates at Jackson Hole. By press time, it had recovered to about $77,712, still down roughly 4% over 24 hours, after briefly reaching as low as $76,909. The selloff accelerated a broader crypto deleveraging, wiping out nearly $488 million from derivatives traders. Traders boosted the odds of a September rate hike to around 60% from about 35% before Warsh spoke, while short-term Treasury yields rose and the dollar strengthened. Warsh argued inflation remains too high, citing the Fed’s preferred PCE running at 3.7% year-over-year and 4.1% annualized over six months—above the 2% target—and suggested conditions are not yet restrictive enough. CoinGlass recorded $487.68 million in liquidations across 97,691 traders, with long positions accounting for over $360 million.