Fed Chair Kevin Warsh triggers a $488 million crypto liquidation cascade as rate-hike expectations rise

BREAKING: $BTC drops below $77,000 as Fed chair Kevin Warsh revives the threat of higher interest rates, triggering a $488 million crypto liquidation cascade.

Bitcoin just fell below seventy seven thousand dollars, and one man's speech did it.

Kevin Warsh took the stage at Jackson Hole, and you can see him here, telling the room that inflation is still too high and the Fed may have work to do. Translation, the next move might be a hike, not a cut. Traders repriced September hike odds from roughly thirty five percent to sixty in a matter of hours.

Crypto had walked into Friday loaded with leverage after the run above eighty thousand, and it paid for it. Nearly four hundred eighty eight million dollars in liquidations, ninety seven thousand traders wiped, over two hundred million of that gone within an hour of the speech. Longs took more than three hundred sixty million of the damage. The single biggest casualty, an eleven point six six million dollar ETH position on Binance.

One sentence from a Fed chair, and half a billion in leverage evaporated. That's the whole story.

This is Sara White, reporting for HIT.