Kevin Warsh's monetary policy emerges as crypto market variable

With Bitcoin down around 50% from its high last October, the monetary policy direction of U.S. Federal Reserve Chair nominee Kevin Warsh is emerging as a key market variable, DL News reported. The market perceives Warsh as a hawk, raising concerns that he may slow the pace of interest rate cuts and potentially shrink the Fed's balance sheet. Pepperstone analyst Dylin Woo stated that if Warsh pursues aggressive monetary tightening, volatility in the cryptocurrency market is likely to increase. Similarly, Axis co-founder Jimmy Shieh analyzed that the 14% drop in BTC immediately following the nomination reflects concerns over Warsh's hawkish monetary philosophy. However, some experts suggest that Warsh's long-term positive view of Bitcoin as a store of value could strengthen the narrative of the asset as a hedge against Fed policy risks.