Why Bitcoin Is Falling Despite Kevin Warsh Becoming Federal Reserve Chair

Bitcoin dropped to nearly $74,190 on Saturday, reaching its lowest level in over a month, even after Kevin Warsh, viewed by many as crypto friendly, officially became chairman of the US Federal Reserve.

The decline appears linked to growing fears that interest rates may stay higher for longer. The US 2-year Treasury yield climbed to 4.14%, its highest level since February 2025, signaling that investors expect tighter monetary policy rather than immediate rate cuts.

Market pricing also suggests traders are increasingly preparing for a possible 25 basis point interest rate hike by December 2026 instead of expecting easier financial conditions.

Kevin Warsh Crypto Support Fails to Lift Bitcoin

Although Warsh has previously supported Bitcoin innovation and criticized central bank digital currencies, analysts say his economic stance matters more for markets. He is widely viewed as an inflation hawk, meaning he may prioritize controlling inflation over boosting asset prices.

Bitcoin Faces Pressure From Federal Reserve Uncertainty

Historical trends also show Bitcoin often struggles during changes in Federal Reserve leadership. Previous transitions under Janet Yellen and Jerome Powell were followed by major Bitcoin corrections, adding to investor caution during the current market shift.