Bitcoin Rally Stalls as Fed’s Warsh Talks Tough on Inflation

The market's immediate reaction to Warsh's inflation stance underscores how sensitive Bitcoin remains to Fed policy signals, even as its long-term narrative decouples from macro tightening. The pause driven by profit-taking, rather than panic, suggests positioning is more speculative than conviction-based. The key tension to watch is whether hawkish rhetoric translates into sustained rate pressure or fades as a short-term headwind. Prediction market optimism offers a counterweight, but it reflects sentiment, not fundamentals. If rate expectations keep shifting, expect continued two-way volatility until a clearer macro direction emerges.