As the new chair of the US Federal Reserve, Kevin Warsh is set to assume his role next month, leading to speculation about potential declines in Bitcoin's value. Historical data indicates that Bitcoin typically experiences downturns following the appointment of a new Fed chair, as noted by the crypto trading account CRYPTOWZRD.
Investors may face “a few months” of losses for Bitcoin (BTC) as Warsh takes the helm. This shift comes amid political pressure, as President Donald Trump publicly expressed disappointment over the lack of interest-rate cuts, hinting at expectations for changes during Warsh's first Federal Open Market Committee (FOMC) meeting in June.
Current chair Jerome Powell's final rate decision is scheduled for Wednesday, with market consensus indicating rates will remain unchanged. Historically, new Fed leadership has pressured both Bitcoin and stock markets, though the S&P 500 has recently reached all-time highs, complicating the outlook for risk assets.