Bitcoin experienced a sudden price drop of $3,000 within an hour, disrupting a period of relative stability across the cryptocurrency market. The sharp downward movement followed a speech delivered by Kevin Warsh at Jackson Hole, dragging down major altcoins and triggering more than $200 million in liquidated positions within a single hour, according to CoinGlass data.
Prior to the speech, the primary cryptocurrency traded at approximately $79,500. The asset briefly dipped to $78,500 during the address and returned to its starting level after it concluded, but the broader market subsequently reacted by mimicking Wall Street in the following hour.
During his first address at the helm of the US Federal Reserve, Warsh adopted a hawkish stance that contrasted with market expectations of a different approach. He reaffirmed the central bank's 2% inflation target as "firm and fixed" and noted that current figures around 3.7% remain too high. Although the central bank did not officially confirm a rate hike for the upcoming FOMC meeting next month, prediction markets saw an increase in odds favoring such a move.
The wider cryptocurrency market followed Bitcoin's descent into negative territory. Ethereum declined by 3% to fall below the $2,500 level, while BNB dropped under $700. Among large-cap assets, XRP recorded one of the steepest losses, falling 5% to trade under $1.40.
Additional losses impacted other major digital assets, including Cardano (ADA), Stellar (XLM), and Bitcoin Cash (BCH). Bitcoin Cash suffered the most significant decline in that cohort, plunging by nearly 9% over a 24-hour period to trade below $250.
