Here's why Fed contender Kevin Warsh is seen as bearish for bitcoin
Bitcoin plunged as Kevin Warsh, a potential Fed chair nominee, is viewed as bearish due to his hawkish stance on monetary discipline.Summary
Bitcoin fell sharply as speculation grew that President Donald Trump might nominate Kevin Warsh, a former Fed Board of Governors member, as the next Federal Reserve chair. Analysts view Warsh as bearish for crypto because he emphasizes monetary discipline, higher real interest rates, and reduced liquidity, seeing crypto as speculative excess rather than an inflation hedge. This view is supported by his historical record during the Global Financial Crisis (GFC), where he repeatedly cited inflation risks even amid deflationary pressures, a hawkish stance some argue exacerbated the crisis. This hawkish history clashes with Trump's desired reflationary, pro-risk asset environment, leading some observers to question Warsh's suitability if he is expected to follow Trump's line on rapid rate cuts. While Warsh's potential appointment is spooking risk assets, his influence as chair would be somewhat diluted by the collective voting of the Board of Governors.
(Source：CoinDesk)