On March 4, US President Donald Trump officially nominated Kevin Warsh as Chairman of the US Federal Reserve. Following Senate approval, Warsh will succeed Jerome Powell, whose second four-year term expires on May 15, 2026.
Bitcoin and other markets’ reaction to the announcement
In the past decade, Warsh has compared Bitcoin to gold on several occasions, stating, “If you’re under 40, Bitcoin is your new gold,” and that Bitcoin is a “sustainable store of value, like gold.” Last year, he described the digital asset as a “good policeman” for federal policy.
This advocacy and his recent nomination have sparked a risk-off attitude among crypto and stock markets alike.
At writing time, Bitcoin was trading at $73,599, up 7.54% over 24h.
Source: CoinMarketCap
The digital asset also led crypto ETFs’ inflows, which reached $1 billion in the past week and broke a five-week streak of outflows totaling $4 billion. Meanwhile, the Nasdaq Composite and the S&P 500 rose 1.5% and 0.9%, respectively.
What’s next?
The January 30 “Warsh Shock” saw markets bleed in anticipation of tight Warsh-led monetary policies. Markets now depict recovery, after the Fed nominee called for interest rate cuts.
Critics view his nomination as “unconventional” since, unlike his predecessors, he lacks a Ph.D. Others add that Trump ties make his endorsement “politically dependent.” Meanwhile, Senator Thom Tillis has blocked the nomination until the Department of Justice (DoJ) completes its criminal investigation of Powell.
Analysts from Kalshi traders project the market could hit $80,000 this month. This theory is supported by the 24h upsurge in Bitcoin open interest to $50.31 billion (14.79%).
BTC’s Moving Average Convergence Divergence (MACD) histogram has also gradually declined, suggesting dissipating sell pressure.
Source: Bitbo
Meanwhile, the taker buy/sell ratio on Binance has risen to a high of 1.18, showing buyers are outweighing sellers.
Analysts propose that a consistent daily close above $71-$72K is required to hit a target of $84K.
Trust with CoinPedia:
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
Investment Disclaimer:
All opinions and insights shared represent the author’s own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored and Advertisements:
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Credit: Source link