Federal Reserve Chair Kevin Warsh said policymakers need greater confidence that underlying inflation is moving toward the central bank’s objective, indicating that more work remains on price stability after discussing employment. Bitcoin fell as low as $78,630 and was recently trading at $79,474, but recovered after traders priced in a 50% chance of a September rate increase. The cryptocurrency has historically benefited from lower interest rates, while persistent inflation has constrained the Federal Reserve’s willingness to ease policy. Earlier market data cited in the topic record put the probability of a Federal Reserve rate increase this year at 68% on Polymarket, up from below 50% the previous week. Bitcoin’s recent gains were also supported by lower Treasury yields after U.S. Treasury Secretary Scott Bessent announced plans to double long-dated bond buybacks, as well as by regulatory optimism surrounding President Donald Trump’s support for the proposed crypto Clarity Act. The Federal Reserve Bank of Kansas City is scheduled to hold its annual Jackson Hole event in Wyoming on Friday, with discussions including cryptocurrencies and stablecoins.