Bitcoin Holds Near $77K as Wall Street Braces for Fed Chair Warsh's Jackson Hole Debut

Bitcoin Holds Near $77K as Wall Street Braces for Fed Chair Warsh's Jackson Hole Debut

Bitcoin opened the week trading near $77,300, holding on to the bulk of a 22% weekly surge as traders take a breather following one of the sharpest rallies of the year. After briefly testing resistance above $78,000 over the weekend, the largest cryptocurrency has settled into a tighter range while the broader market digests its gains. Ether followed a similar pattern, changing hands above $2,500 after climbing more than 1% on the day, while some of last week's standout altcoins are giving back ground: XRP, which had jumped nearly 48% over seven days, and Zcash, up roughly 70% over the same stretch, both pulled back as short-term traders locked in profits.

The pause comes after a week defined less by crypto-specific catalysts and more by macro tailwinds — easing Treasury yields and growing optimism that Washington's regulatory posture toward digital assets is softening.

ETF Demand Keeps the Bid Underneath the Market

The rally's durability owes much to institutional flows. US-listed spot Bitcoin ETFs pulled in roughly $1.9 billion over the week, their strongest showing in months, while spot Ether funds added close to $700 million over the same period. That sustained buying pressure from regulated investment vehicles has given the market a firmer floor than in previous rebounds, where gains driven mainly by short-covering tended to unwind quickly. Even so, derivatives desks note that positioning has grown crowded again, meaning the market remains sensitive to sudden swings in leverage even as the underlying demand story stays constructive.

The Fed Takes Center Stage This Week

Attention is now shifting from crypto-native catalysts to Washington. The Kansas City Fed's annual Jackson Hole Economic Policy Symposium opens Thursday, August 27, and runs through Saturday, drawing central bankers from more than 70 countries under the theme "Financial Innovation: Implications for Payments and Policy." The event's marquee moment arrives Friday morning, when Federal Reserve Chair Kevin Warsh — who took over from Jerome Powell in May — delivers his first keynote address as chair, just three weeks ahead of the Fed's September 16 rate decision.

Warsh has kept his public commentary unusually sparse since taking office, a shift from the more predictable forward guidance markets grew used to under his predecessor. That restraint has left traders parsing every available signal, particularly after a split 9-3 vote at the Fed's July meeting, where three regional bank presidents pushed for immediate tightening. Odds of a September rate move have swung sharply in recent weeks alongside softer labor-market data, and Warsh's remarks are widely seen as the last major signal before the FOMC meets again. Adding to the week's macro calendar, fresh US personal consumption expenditures (PCE) inflation data is also due, giving investors two separate readings on the health of the economy within days of each other.

What It Means for the Market

For crypto specifically, the setup mirrors gold and equities: risk assets have rallied on hopes that the Fed's next move favors easier policy, but that optimism is not yet confirmed. A dovish tone from Warsh, paired with cooling inflation data, could extend bitcoin's push toward the $80,000 level analysts have flagged as the next major test. A more hawkish or noncommittal message, on the other hand, risks reigniting the kind of leverage-driven pullback the market saw over the weekend. With ETF inflows still positive and Treasury yields relatively contained heading into Thursday, the near-term bias remains cautiously constructive — but this week's macro calendar, not crypto headlines, is likely to decide which direction the market breaks next.