Over the past week, Bitcoin has kept climbing, with modest gains pushing it above $80,000 range for the first time since January. The top cryptocurrency is now up about 13% over the past month, riding the bullish wave that kicked off in early April. According to Bitcoinist’s report, Kevin Warsh is set to take over as chairman of the US Federal Reserve by May 15. With Bitcoin and other risk assets often reacting to big macro moves, speculation is heating up about what the future might hold under the new Fed chief.
Is Warsh a Hawkish Policy Maker?
A recent CryptoQuant report by XWIN Research Japan highlights Fed Chair-elect Kevin Warsh’s policy approach toward crypto. The former Fed governor and member of George W. Bush’s Economic Team is seen as a hawkish regulator intent on proactive inflation control. In his late April Senate hearing, Warsh hinted there’d be no shift in this stance, dismissing speculation that he’d pursue rate cuts after being appointed by President Donald Trump.
Emphasizing the Fed’s independence despite presidential pressure for lower rates—a point that fueled a year-long public dispute with outgoing Chair Jerome Powell—Warsh’s remarks sent Bitcoin prices sliding to around $75,000, dampening hopes for liquidity-friendly policies. XWIN notes Bitcoin’s strong reaction to macroeconomic shifts, from its historic rally during 2020–2021’s quantitative easing to the sharp corrections after 2022’s tightening. While Warsh shows no rush to cut rates, uncertainty remains, as parts of his profile still attract crypto investors.
Warsh: The Crypto Enthusiast And Bitcoin Fan
In his Senate hearing, Warsh praised the growth of digital assets, calling them “part of the fabric of our financial services.” Required asset disclosures revealed that the new Fed Chair remains actively involved in the cryptocurrency industry, holding multiple investments in various projects.
XWIN Research Japan notes that Warsh calls Bitcoin the “digital gold” for younger investors, suggesting it could become a regulatory benchmark for digital assets. At the same time, he’s highly skeptical of altcoins, dismissing some as “software pretending to be money.”
XWIN analysts think his hawkish stance might create short-term pressure on Bitcoin’s price, but his strong support for crypto, deep understanding of Bitcoin, and firm opposition to CBDC development could boost long-term institutional confidence.
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