Fed Chair Warsh delivered hawkish remarks at Jackson Hole, raising market expectations for rate hikes, pressuring the crypto market, with Bitcoin falling to $77,839.86 and gold tokens also declining.
Fed Chair Warsh's hawkish remarks became the market focus, as he hinted that inflation remains above target and further policy tightening is needed, leading to a rise in the probability of a September rate hike. This shift in expectations weighed on risk assets, with cryptocurrencies and gold tokens both declining. Additionally, the U.S. appeals court ruling on prediction markets created a legal split, potentially affecting industry regulation. Among commodities, agricultural prices rose due to weather and supply concerns, while gold tokens were pressured by a stronger dollar. The market is overall in an adjustment phase, with investors focusing on upcoming economic data and Fed officials' remarks.
The crypto market was dragged down by hawkish Fed expectations, with Bitcoin falling 3.02% to $77,839.86, failing to hold the $80,000 level. Major coins such as Ethereum and Solana also declined, with Solana falling 4.56% despite its validators passing a proposal to accelerate deflation, as short-term positive news could not offset macro pressures. Additionally, the stablecoin space saw frequent developments: Circle sponsored Chelsea FC, and Bullish provided a $100 million stablecoin loan to USD.AI, showing institutional interest in stablecoin applications. BitGo acquired NYDIG's trading division, expanding institutional services. Overall, the crypto market faces short-term pressure, but long-term institutional positioning continues.
Gold tokens XAUT and PAXG fell 2.74% and 2.78% respectively, to $4,459.16 and $4,462.63, in line with spot gold. The Fed's hawkish remarks boosted the dollar, pressuring gold prices. Meanwhile, rising expectations of rate hikes increased real interest rates, diminishing gold's appeal. However, geopolitical uncertainties still provide some support for gold. In commodities, corn and wheat futures surged due to weather and supply issues, but gold tokens have low correlation with agricultural products. Investors should watch upcoming economic data for its impact on gold prices.
This briefing is generated automatically from public sources for reference only and is not investment advice. Markets carry risk; make your own decisions.
