Bitcoin Slide Below $77,000 Ahead of Kevin Warsh’s Federal Reserve Leadership

Bitcoin slide below $77,000 level on Friday as investors remained cautious ahead of Kevin Warsh officially taking over as chairman of the US Federal Reserve. BTC has largely moved sideways throughout the week, showing limited momentum as markets wait for signals on future monetary policy.

Warsh is expected to be sworn in during a White House ceremony, marking a closely watched leadership transition at the central bank.

Weak Consumer Sentiment Raises Economic Concerns

Fresh economic data added pressure to market sentiment. The University of Michigan Consumer Sentiment Index for May dropped to a record low of 44.8, below expectations of 48.2. The Expectations Index also slipped to 44.1, reflecting growing concerns about the economic outlook.

At the same time, inflation expectations moved higher, with one year expectations rising to 4.8% and five year expectations increasing to 3.9%, signaling persistent inflation worries.

Markets Watch Fed Direction Under Kevin Warsh

Warsh takes charge as rising oil prices linked to Middle East tensions complicate the inflation outlook. Interest rate markets are now pricing in more than a 70% probability of at least one rate hike by the end of 2026, while US equities posted modest gains ahead of the holiday weekend.