Bitcoin fell from about $79,500 to below $77,000 after Federal Reserve Chair Kevin Warsh delivered a hawkish message on inflation at the Jackson Hole symposium, before recovering to around $78,000. CoinMarketCap data showed a 24-hour decline of roughly 3.4%, while prediction markets narrowly favored a September rate hike over no change after trailing that outcome throughout the week. Warsh, marking his 100th day as chair, said the Fed’s predominant focus should be prices because inflation remains above its 2% target, but he stopped short of committing to a rate increase. Analysts said tighter monetary policy could weaken Bitcoin’s debasement-trade narrative by making bonds more attractive and reducing liquidity for risk assets. They also described the pullback as limited because leverage had been reduced after the previous week’s short squeeze. Treasury bond buybacks could provide a counterweight to restrictive Fed policy. Bitcoin remained up 26.35% month-to-date, its strongest August performance since 2017, while technical analysis identified resistance extending toward $86,000.