Bitcoin Rebounds From $80,000 Dip as Fed Chair Warsh Avoids Rate Hike Talk

Bitcoin slid to the $80,000 area on Thursday, dipping briefly to about $79,800, before buyers stepped in and pushed it back to roughly $82,000 by Friday’s Wall Street open. The pullback followed a week of heavy selling in South Korean tech stocks. When that market steadied, crypto calmed too.

Warsh Remarks Ease Rate Hike Fears

Fed Chair Kevin Warsh told IMF chief Kristalina Georgieva that he does not prejudge meetings or announce moves early. Traders heard a softer message. CME FedWatch now puts the odds of a 25 basis point October hike at 15%, down from 27% a day earlier. Economist Robin Brooks said an October hike looks unlikely, since worries about an AI blow-up are making markets more welcoming to a dovish tone.

Treasury Yields and Stock Market Outlook

The 10-year US yield touched 5.13% before easing to about 5.07%, raising the question of whether Washington must pick between calming bonds and supporting stocks. The Kobeissi Letter says equity weakness has been the only thing pulling yields lower since August, and it describes a “bull-bear” market in which the US-Iran war is holding valuations back.