Bitcoin fell below $78,000 and the total crypto market capitalization shed more than $80 billion after Federal Reserve Chair Kevin Warsh warned at Jackson Hole that inflation remains well above the Fed’s 2% target. Warsh said the U.S. economy and labor market remain resilient, financial conditions are not clearly restrictive and recent CPI and PCE readings had not demonstrated meaningful improvement in underlying inflation. His remarks lifted CME FedWatch odds of a September rate hike above 57% from about 35% earlier, with some readings near 60%, while Treasury yields rose, the dollar posted its strongest one-day gain in more than two months, spot gold fell sharply and major risk assets declined, led by a 1.4% drop in the Russell 2000. Bitcoin traded near $77,955 after an overnight high of $81,479.50 and a session low of $76,845.71, down about 2.77% on the session, with early-September employment and inflation data, ETF flows, yields and dollar liquidity emerging as key tests for risk assets.