Donald Trump’s reported pick of Kevin Warsh to replace Jerome Powell as Federal Reserve chair sent a clear shock through risk markets — including crypto. After last night’s leak that Warsh would be the choice, markets dropped and bitcoin slid back to about $81,000. But not everyone sees Warsh as a one-note hawk. Hedge fund billionaire Stanley Druckenmiller, who has worked alongside George Soros and runs Duquesne Capital Management, pushed back on the instant labeling. “The branding of Kevin as someone who’s always hawkish is not correct,” Druckenmiller told the FT on Friday. “I’ve seen him go both ways.” Druckenmiller is well placed to judge: Warsh has been a partner at Duquesne since 2011, and the two reportedly speak or text more than a dozen times a day — a relationship described as close to father and son. “I could not think of a single other individual on the planet better equipped,” Druckenmiller added, praising Warsh’s qualifications for the Fed’s top job. Druckenmiller also has long ties to Scott Bessent, the reported pick for Treasury secretary, whom he hired at Quantum Fund some 30 years ago. The Financial Times noted last year that “the pair [Bessent and Warsh] embody the way Druckenmiller interprets markets and economic policy.” Druckenmiller echoed that view, saying he’s “really excited about the partnership between [Warsh] and Bessent,” and that an aligned Fed chair and Treasury secretary would be “ideal.” For crypto traders, the episode underlines markets’ sensitivity to Fed leadership signals. Even if Warsh’s record isn’t purely hawkish, the mere expectation of a tougher policy stance can trigger rapid re-pricing across risk assets — and that volatility is likely to keep crypto traders on edge as the administration’s picks become official. Read more AI-generated news on: undefined/news