Increased Probability of Kevin Warsh Becoming Fed Chair Raises Market Concerns Over "Return of Monetary Discipline" as Negative for Bitcoin

Odaily News As the probability of Kevin Warsh becoming the next Federal Reserve Chair surged in prediction markets, Bitcoin extended its decline, briefly falling near $81,000. Markus Thielen, founder of 10x Research, pointed out that the market widely views Kevin Warsh regaining policy influence as a negative factor for Bitcoin. The reason lies in his long-standing emphasis on monetary discipline, higher real interest rates, and tightening liquidity. His policy framework tends to regard crypto assets as "speculative products born from a loose monetary environment" rather than tools for hedging currency depreciation. Higher real interest rates mean that the true cost of financing increases after accounting for inflation, which typically suppresses demand for risk assets, including Bitcoin. Furthermore, several observers believe that a hawkish stance and an underestimation of deflation risks may have exacerbated economic downward pressure at the time. If a similar approach is adopted, it could lead to higher unemployment, a slower recovery pace, and greater deflation risks. (CoinDesk)