Potential Kevin Warsh post on the Fed pushes Bitcoin to $69,700

MEVSupportGroup · 2026-02-14T10:04:18+00:00

The potential appointment of Kevin Warsh as head of the Federal Reserve has led to a notable decline in Bitcoin's value, dropping to $69,700. This reflects market concerns about his strict monetary stance impacting risky assets, particularly cryptocurrencies, which he views as speculative and non-hedging in tight financial conditions. Higher real interest rates further reduce demand for cryptocurrencies, pushing investors toward safer assets. If Warsh's policies are fully implemented, they could lead to economic stagnation and adverse effects on crypto values.

MEVSupportGroup

2026-02-14 10:04:18

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The possibility of Kevin Warsh being appointed as Chair of the Federal Reserve triggered a significant drop in Bitcoin’s price, which is falling to $69,700. This devaluation of the cryptocurrency occurs amid deep market concerns about how the hawkish monetary stance of the potential Fed chair could impact the risk asset ecosystem.

Hawkish Monetary Policy as a Brake on Risk Assets

According to expert analysis, including Marcus Thielen from 10x Research, Warsh’s potential leadership at the Fed is viewed by the market as a negative event for the crypto sector. This is related to Warsh’s ideological focus on consistent monetary discipline, raising real interest rates, and tightening liquidity in the economy.

Historically, Warsh has criticized cryptocurrencies as speculative financial instruments that develop solely under loose monetary policy conditions. In his view, digital assets cannot serve as a hedge against currency devaluation in tight economic conditions with strict monetary policy.

Why Higher Interest Rates Limit Demand for Cryptocurrencies

Higher real interest rates are a key mechanism through which Warsh’s potential appointment could pressure Bitcoin and other risk assets. When the yields on safe financial instruments (bonds, deposits) rise, investors shift from speculative positions toward more conservative sources of income.

Analysts point out that Warsh’s hawkish stance reflects his belief in prioritizing inflation fighting over economic growth. This approach involves consistently raising borrowing costs, which slows down the investment cycle in risk assets.

Historical Lessons of Deflation and Their Impact on the Economy

Market observers highlight potential risks that could arise from such policies. Past experience shows that excessive monetary tightening and underestimating deflationary pressures can lead to labor market stagnation, slowed economic recovery, and the buildup of deflation risks.

If the monetary policy approach that Warsh potentially advocates is fully implemented, it could cause complex macroeconomic consequences: rising unemployment, slowing of business activity recovery, and strengthening deflationary expectations. These factors traditionally create the worst conditions for cryptocurrency price growth.

The current Bitcoin price level at $69,700 indicates that the market has already priced in these risks.

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