Fed Chair Warsh Downplays Inflation, Bitcoin Drops Below $80K

Warsh's downplaying of disinflation progress reframes the macro backdrop for risk assets, suggesting the Fed's easing cycle may be slower than markets had priced. For Bitcoin, the drop below $80K highlights its continued sensitivity to liquidity expectations, acting more like a high-beta risk asset than a hedge in this phase. The key tension is whether the Fed's caution stems from sticky inflation data or a deliberate policy stance, which would alter how sustained the pressure on crypto markets becomes. Watch for whether risk assets stabilize only if upcoming data forces a reassessment of the Fed's timeline, as the current narrative leaves little room for dovish surprises.