Why is Bitcoin falling despite pro-crypto Kevin Warsh becoming Fed chair?
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- 2-year Treasury yield rose to 4.14%, the highest level since February 2025, pushing above the Fed’s 3.50%‑3.75% target range.
- CME futures now price a possible 25‑basis‑point Fed hike in December 2026 and expect rates to stay unchanged for most of 2026, reflecting market doubt about quick easing.
- Bitcoin fell below $80 k, trading around $76 k, as higher yields weaken the low‑rate environment that normally supports crypto prices.
- Kevin Warsh is an inflation hawk; despite his crypto‑friendly rhetoric, analysts say his monetary stance remains tight.
- Lucky notes that Bitcoin dropped 84% after Janet Yellen took office in Jan 2014, 73% after Jerome Powell started in Feb 2018, and 60% after Powell’s second term in May 2022, showing chair changes historically hurt BTC.
Why it matters: Crypto investors see Bitcoin slip ~5% to $76k, while bond traders benefit from the 2‑year yield hitting 4.14%; tighter Fed policy curtails liquidity for digital assets, pressuring crypto‑focused funds.
