Kevin Warsh’s nomination by President Trump as the next Federal Reserve Chair instantly shook the Bitcoin market. While Warsh has flagged many crypto projects as "fraudulent and worthless," he’s publicly supported Bitcoin, labeling it a legitimate asset—a stance that sets him apart from most traditional bankers.

Here’s what’s happening:
- As soon as Warsh emerged as the frontrunner, Bitcoin experienced heightened volatility, dropping sharply to near $81,000 before recovering to around $84,000. This intense price action reflects both optimism and anxiety: traders are grappling with his reputation for favoring tighter monetary policy and discipline, which could mean less dollar liquidity and potentially headwinds for risk assets in the medium term.
- Warsh’s explicit support for Bitcoin means the asset may get more legitimacy in the eyes of policymakers, but his hawkish monetary outlook (preferring less money-printing and more restraint) has led some analysts to label him “bearish for Bitcoin”—at least initially, as easy money has historically supported crypto rallies.
- The market reaction shows uncertainty: a drop in price, then stabilization, and ongoing debate over whether Warsh will champion crypto innovation or tighten the screws on speculative excess.

It’s worth noting that while a pro-Bitcoin Fed Chair could boost regulatory clarity and mainstream acceptance, tighter monetary conditions might weigh on short-term prices. The landscape is likely to remain volatile as his nomination goes through political debate—the best move for investors is to stay nimble and prepare for swift changes.#MyWeekendTradingPlan