Bitcoin is holding near the $80,000 mark ahead of Federal Reserve Chair Kevin Warsh’s first Jackson Hole speech. The altcoin market is also trading higher, led by a strong rally in Solana.
Warsh will speak on Friday, August 28, at 10 a.m. ET. Markets will watch his comments on interest rates and the Fed’s approach to the Treasury market.
The speech comes after the U.S. Treasury expanded its long-term bond-buyback program. The Fed’s response could affect crypto prices through movements in the dollar and Treasury yields.
Why Warsh’s speech matters for Bitcoin
According to the Federal Reserve’s official calendar, Warsh will deliver keynote remarks at the Jackson Hole Economic Policy Symposium. This will be his first Jackson Hole speech since becoming Fed Chair in May.
Markets expect Warsh to provide signals about the future path of interest rates. His comments on balance sheet policy and long-term Treasury yields could prove more significant.
The U.S. Treasury announced an expansion of its long-term bond buybacks on August 19. The decision came as the 30-year Treasury yield approached its highest level since 2007.
According to the Treasury Department, the maximum size of each operation will rise from $2 billion to at least $4 billion. The higher amounts will apply from September 9 through November 4.
The program covers nominal coupon securities in the 10-to-20-year and 20-to-30-year maturity sectors. The Treasury aims to improve market liquidity for older and less actively traded securities.
Treasury buybacks are separate from QE
Treasury buybacks do not directly represent quantitative easing. The program does not expand the Fed’s balance sheet or create new central bank reserves.
Investors still interpreted the decision as an attempt to limit long-term borrowing costs. Expectations strengthened around the possibility that the Fed could eventually support the bond market.
Fidelity Director of Global Macro Jurrien Timmer said markets were beginning to price in the risk of fiscal dominance. He argued that the Treasury may need to expand the program further to keep yields under control.
Such a scenario could increase pressure on the Fed to support the operations. Timmer said this development would likely weaken the dollar while supporting gold and Bitcoin.
Bitcoin trades close to $80,000
Bitcoin was trading at around $79,979 at the time of writing. BTC gained 1.42% over the previous 24 hours and 6.09% over seven days.
Bitcoin’s market capitalization exceeded $1.6 trillion. Its daily trading volume stood at approximately $37.9 billion.
Demand for spot Bitcoin ETFs also supported the price. Market data showed that U.S. funds recorded $2.8 billion in net inflows across eight consecutive trading sessions.
Bitcoin climbed as high as $81,280 during overnight trading. Profit-taking ahead of Warsh’s speech later pulled the price back toward $80,000.
Solana leads the altcoin market
Solana recorded the strongest move among major altcoins. SOL gained 6.40% in 24 hours to trade at $107.64.
Solana’s seven-day gain reached 19.61%. HYPE traded at $83.31 after rising 14.56% over the same period.
XRP advanced 1.52% to $1.43. The token gained 9.59% during the past seven days.
BNB traded at $712.65, while Ethereum changed hands near $2,501. BNB gained 6.71% for the week, compared with Ethereum’s 5.67% increase.
Dogecoin rose 1.44% to approximately $0.088. Zcash stood out among major altcoins with a weekly gain of 32.51%.
Warsh’s remarks could create two market scenarios
Warsh could weaken market expectations by describing the Treasury buybacks as routine liquidity operations. A clear statement ruling out Fed participation may push the dollar and long-term yields higher.
Under this scenario, profit-taking around Bitcoin’s $80,000 level could accelerate. Altcoins may experience larger price swings because of their higher volatility.
Leaving room for possible coordination with the Treasury would create a different outlook. Expectations for lower yields and a weaker dollar could extend Bitcoin’s rally.
BNY analysts do not expect Warsh to offer direct forward guidance. They believe his speech may focus on the Fed’s reform agenda and balance sheet policy.
