Why is Bitcoin falling despite Kevin Warsh becoming Fed Chair?
On Saturday, the price of Bitcoin (BTC) dropped to its lowest level in over a month, reaching $74,190. Interestingly, this decline occurred despite Kevin Warsh, who is favorable toward cryptocurrencies, being sworn in as Federal Reserve (Fed) Chair a day earlier. This is reported by Cointelegraph.com reports .
The main reason for the decline in Bitcoin's price was the rise in the yield of U.S. 2-year Treasury notes to 4.14%. This is the highest level since February 2025. The 2-year yield reflects traders' expectations regarding interest rates in the near future.
Currently, markets do not believe in a rapid easing of monetary policy under Kevin Warsh. According to CME data, traders expect the Fed to keep rates unchanged for most of 2026. The futures market has even begun pricing in the possibility of a 25-basis-point rate hike in December.
Historically, when the 2-year yield is higher than the Fed rate, it usually signals a restrictive policy. Bitcoin generally tends to grow in environments where rates are falling and liquidity is increasing. Therefore, the rise in the bond market is weakening the arguments for a "bull" market for BTC.
However, Kevin Warsh has previously expressed positive views on Bitcoin, criticized central bank digital currencies (CBDCs), and supported financial innovation in the private sector. While this is a positive long-term signal for crypto traders, macroeconomic pressure currently prevails.
