Bitcoin dropped to $74,190 over the weekend, its lowest price in more than a month, just one day after Kevin Warsh was sworn in as the 17th Chair of the Federal Reserve Board of Governors.
Warsh is widely considered one of the most crypto-friendly Fed chairs in history. He’s publicly said Bitcoin “does not make me nervous” and has disclosed personal investments in crypto-related projects. None of that mattered when traders started digesting what his appointment actually means for monetary policy.
The hawkish reality behind the pro-crypto label
With inflation hovering around 3.8% at the time of his swearing-in on May 22, Warsh inherits a price stability problem that remains stubbornly above the Fed’s 2% target. His past commentary has consistently leaned hawkish, favoring tighter monetary conditions to wrestle inflation down rather than accommodating growth with easy money.
Market expectations for Fed rate cuts in 2026 have been slashed significantly since Warsh’s nomination by President Donald Trump back in March. Rising short-term bond yields are reinforcing the message.
