Bitcoin briefly fell before recovering on Friday after Federal Reserve Chair Kevin Warsh used his first major speech as head of the U.S. central bank to say policymakers have “more work to do” in the fight against inflation.

The leading cryptocurrency was recently trading at $79,474, having dropped as low as $78,630 before quickly rising again.

Bitcoin has historically performed well in a low interest rate environment, but the Federal Reserve has been reluctant to lower borrowing costs amid sticky inflation in the world’s biggest economy. The Fed is charged by Congress with a dual mandate — maximum employment and stable prices — and Warsh’s remarks put the strain between those two goals on display.

Addressing the central bank’s mandate after speaking about employment, Warsh said: “But on the price-stability side of our mandate, the numbers are more concerning.”

He added: “We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do.”

In the past, bitcoin has declined on news that the Federal Reserve considers inflation too high, because such statements imply a lower chance of a rate cut. Following Warsh’s speech, traders priced in a 50% chance of a rate hike in September, leaving the Fed’s September policy meeting as the next major checkpoint for rate expectations.

But bitcoin has appeared to — at least for now — shrug off the speech.

The cryptocurrency began surging last week after U.S. Treasury Secretary Scott Bessent announced the department would double the size of its long-dated bond buybacks. The news pushed yields lower and sent the dollar sliding, while non-yielding assets such as bitcoin and gold jumped.

Positive regulatory news has also supported the coin. President Donald Trump said last week that the long-awaited crypto Clarity Act was a “very, very powerful” piece of legislation and urged lawmakers to get it over the line. The proposed law, still working its way through Congress, would establish a framework for distinguishing between digital assets that are securities, commodities, or payment stablecoins — legislation the crypto industry has long called for.

The speech came as the Federal Reserve Bank of Kansas City holds its annual event in Jackson Hole, Wyoming, on Friday, where central bankers, Federal Reserve officials, policymakers, and academics will gather to discuss “Financial Innovation: Implications for Payments and Policy.” The Wyoming retreat has long served as a stage where Fed chairs have signaled shifts in the direction of monetary policy, a history that lent added weight to Warsh’s debut remarks there.

According to the Federal Reserve Bank of Kansas City website, this year’s event will touch on how “recent years have seen a dramatic increase in innovation in financial intermediation and payments,” including new technologies such as “cryptocurrencies and stablecoins.” The presence of digital assets on the official agenda underscores their growing prominence in mainstream policy debates.

This post first appeared on Bitcoin Magazine and is written by Mathew Di Salvo.