Bitcoin dropped to around $78,800 on Thursday, giving back part of its 22 % rally since Monday, after the US PCE index came in at 3.7 % year-over-year, slightly above the consensus forecast of 3.6 %. This inflation reading, still far from the Federal Reserve’s 2 % target, makes a September rate cut less certain and weighs on risk assets. The annual Jackson Hole symposium opened in Wyoming in this tense context, with Kevin Warsh’s first speech as Fed president scheduled for Friday. The odds of a September rate cut have slightly decreased in the futures market without collapsing, while the dollar strengthened against major currencies. Warsh’s verdict, expected on Friday, could determine the direction of US monetary policy for the coming months.
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