Bitcoin seen undervalued as Trump Fed pick Warsh awaits confirmation
A Coinbase survey found Bitcoin (BTC) sentiment remains strongly bullish on valuation. About 75% of institutional investors and 61% of non-institutional investors say Bitcoin is “undervalued,” versus only 7% (institutions) and 11% (non-institutions) calling it overvalued. The survey was released April 28, 2026, as Jerome Powell wraps up his Fed chair role.
On the policy front, President Trump has nominated Kevin Warsh to succeed Powell, with a likely Senate confirmation vote in coming weeks. Powell’s latest FOMC meeting kept rates at 3.50%–3.75%, and he said he will remain on the Board of Governors after his chair term ends (May 15). Analysts note this could slow or complicate Warsh-backed ideas (e.g., changes around the Fed’s inflation target framework and the dot plot), meaning the path to looser policy may be less straightforward.
For traders, the market catalyst highlighted alongside the survey is ETF demand. Spot Bitcoin ETFs have pulled in nearly $2 billion in year-to-date inflows, and daily trading volumes now rival mega-cap equities. One cited example puts Bitcoin daily volume above $50B, with ETF liquidity described as “institutional ready,” supporting a structural (not purely speculative) bid. The article also suggests consolidation near current levels before a potential push toward $100,000 by year-end if conditions align.
Headline takeaway: Bitcoin bulls have valuation support plus sustained spot ETF inflows, but Fed leadership details (Powell staying on the board) may add rate-policy uncertainty near term.
Bullish
This is broadly bullish because it combines three trader-relevant positives for Bitcoin: (1) a persistent “undervalued” institutional/retail conviction from Coinbase’s survey, (2) ongoing spot Bitcoin ETF inflows near $2B YTD, and (3) a potential Fed leadership shift toward easier policy expectations once the political nomination process advances.
However, the article also flags a near-term friction point: Jerome Powell will remain on the Board of Governors after his chair term ends. In similar past periods, when the “headline” leadership change was delayed or constrained by remaining institutional power, rate-cut timelines and bond yields often moved in a choppy way before markets fully repriced. That suggests Bitcoin could see volatility around confirmation headlines, FOMC messaging, and real-rate data.
Short-term (days to weeks): expect sentiment support from ETF flows, but trading may react sharply to confirmation progress or Powell-related comments, keeping upside rallies more headline-driven.
Long-term (months): if ETF inflows remain structural and markets ultimately price a friendlier rate path under Warsh, the valuation backdrop could translate into sustained bids. If geopolitics/macro deterioration resurfaces, the “neutral macro” tone from Coinbase could cap momentum, leading to consolidation rather than a straight trend.