🦅 Warsh Fed Chair Speculation Spooks Bitcoin
Bitcoin slid toward $81K after reports suggested Kevin Warsh is emerging as a leading candidate to replace Jerome Powell as U.S. Federal Reserve Chair.
Markets view Warsh as decidedly hawkish. During the Global Financial Crisis, he repeatedly warned about inflation even as deflation risks and unemployment surged—cementing his reputation as a supporter of tight monetary policy.
Analysts say a Warsh-led Fed would likely mean:
Higher real interest rates
Reduced liquidity
Stronger U.S. dollar
Less appetite for risk assets like Bitcoin
This reaction is ironic given Trump’s push for aggressive rate cuts and pro-growth policies. Many observers argue Warsh’s history clashes with that agenda, raising doubts about the fit.
While the Fed chair doesn’t set rates alone, markets price expectations fast. Until clarity emerges, Warsh’s hawkish past may continue to pressure BTC and broader risk assets.
📉 Macro fears move markets before policies do.
