Bitcoin has experienced a recent decline, with its price falling to around $81,000 late Thursday. This drop is largely attributed to growing speculation about Kevin Warsh’s potential appointment as a new member of the Federal Reserve. Warsh, a well-known economist and former Fed board member, is recognized for his hawkish stance on monetary policy, which is generally viewed as unfavorable for cryptocurrencies. As the world’s most prominent and oldest cryptocurrency, Bitcoin’s price is highly sensitive to global financial policies and market sentiment. When central banks implement tightening measures such as interest rate hikes, investors typically shift towards traditional assets, negatively impacting cryptocurrency valuations. Increased betting on Warsh’s appointment has heightened investor concerns over profits, intensifying bearish trends in the Bitcoin market. This situation creates uncertainty for the crypto market’s future, especially amid ongoing global economic shifts. If Warsh’s appointment is confirmed, it is expected that stricter monetary policies will prioritize traditional investments, putting further downward pressure on cryptocurrencies. Such signals usually prompt investor caution, potentially leading to additional declines in Bitcoin and other digital currencies. Ultimately, Bitcoin’s price and future depend heavily on global financial policies and central bank strategies, with Warsh’s potential role representing a significant turning point.
Source: coindesk
