Trump nominates crypto‑friendly Kevin Warsh as next Federal Reserve chair
US President Donald Trump announced the nomination of former Fed governor Kevin Warsh to succeed Jerome Powell as Federal Reserve chair. Warsh, 55, served on the Fed Board from 2006–2011 and is known for criticizing ultra‑loose monetary policy and Powell’s crisis‑era interventions. He previously worked at Morgan Stanley and has expressed relatively positive views on Bitcoin, saying it can impose market discipline. The nomination, posted on Truth Social, is expected to trigger a contentious Senate confirmation process and could face delays or opposition that prolong market uncertainty. Markets reacted quickly: the US dollar and 10‑year Treasury yields rose, gold tumbled roughly 4%, and Bitcoin consolidated around the mid‑$80k area after an intraday swing (trading near $82k–$83k in coverage), with chart watchers flagging a head‑and‑shoulders neckline breach that implies downside risk toward $75k if selling continues. Traders should monitor Senate proceedings, Fed guidance, interest‑rate expectations, and flows into risk assets—because a confirmed Warsh, perceived as more hawkish, could raise tightening expectations and increase volatility in crypto and traditional markets.
Bearish
The nomination of Kevin Warsh is priced by markets as increasing the odds of a more hawkish Fed, which pushed the dollar and bond yields higher and led to a sharp fall in safe‑haven gold. For Bitcoin specifically, the immediate effect has been consolidation below the recent intraday peak, with technical signals (head‑and‑shoulders neckline breach) pointing to possible downside toward ~$75k if selling continues. Confirmation risk and a contentious Senate process add prolonged political uncertainty, which typically raises volatility and can weigh on risk assets in the short term. Over the medium to long term, outcomes are binary: a confirmed, persistently hawkish chair would likely keep rate expectations higher and be bearish for crypto prices; conversely, if Warsh is blocked or moderates policy rhetoric, downside pressure could ease. For traders this implies elevated short‑term downside risk and higher volatility — position sizing, stop management and monitoring of Fed‑related communications and Senate developments are critical.