Bitcoin’s price dropped below $26,000 following Federal Reserve chair Jerome Powell’s hawkish speech at the Jackson Hole Symposium. Powell stated that policy would remain restrictive until inflation decreased, causing the US dollar index to rise. A strengthening dollar index presents challenges for bitcoin as it reduces its risk-adjusted return. Powell’s speech echoed last year’s comments, indicating a continuation of monetary tightening. The Federal Open Market Committee has raised the policy rate by 300 basis points since the previous symposium.
AI Sentiment: Negative