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Bitcoin's recent price action was driven by Fed expectations. Aug 28 to 29: Warsh's Jackson Hole speech was read as hawkish, and September hike odds rose above 60%. BTC fell from 81K to 77K. Aug 30 to Sep 2: Government bond yields rose across major markets, raising the short-term opportunity cost of holding non-yielding assets. BTC slipped to a two-week low of 76K. Sep 3 to 4: Governor Waller said he would be inclined to hold in September if inflation data keeps improving, and hike odds fell back to about 50%. BTC jumped from 77K to 82.2K, its highest since May, with risk assets rallying across the board. One week, one variable. This close to the FOMC, the market is highly sensitive to hike expectations.(BloFin Research)
