Crypto’s $80K Rally Faces Its Biggest Test at Jackson Hole

Crypto is heading into one of its most important macro weeks of the year.
Bitcoin enters Jackson Hole week near $80,000 after gaining roughly 28% in August.
Market sentiment has shifted just as quickly.
The Crypto Fear & Greed Index has climbed to 74, its highest level in nearly 11 months, as traders move back into risk.
The rally accelerated after Treasury’s expanded bond buybacks pushed long-term yields and the dollar lower.
That move triggered more than $4 billion in crypto short liquidations, adding forced buying to the breakout.
Liquidity speculation added another tailwind, with traders focused on the possibility that Treasury could draw down part of its nearly $1 trillion cash balance and inject more money into the financial system.
Now the rally faces its first major macro test.
PCE inflation and GDP arrive Wednesday.
Then on Friday, Fed Chair Kevin Warsh delivers his first Jackson Hole keynote.
A dovish message could reinforce the liquidity trade and push crypto sentiment toward outright euphoria.
A hawkish surprise could quickly reverse it.
Bitcoin has momentum.
Now Warsh gets the microphone.