President Donald Trump nominated former Federal Reserve Governor Kevin Warsh to become the next Fed chair. The announcement triggered an immediate shift in financial markets: gold, which had been rallying sharply, fell below the $5,000 mark, while Bitcoin spiked above $83,700. At press time, Bitcoin had eased to around $83,000, narrowing its 24-hour decline to 2.2%.
Gold Profit-Taking Meets Bitcoin Bounce
On January 30, Trump officially named Kevin Warsh as his pick to lead the Federal Reserve. The news sent gold tumbling, with the precious metal breaking below $5,000 as investors took profits or rotated into other assets. Bitcoin, in contrast, surged during the pullback, hitting a high of $83,700 before retreating slightly.
Warsh's Bullish Stance on Bitcoin
Market watchers attribute the rotation to Warsh's previously expressed positive views on Bitcoin. Warsh has stated that Bitcoin "does not make him nervous" and called it an "important asset" that can act as a "monetary policy inspector," flagging policy errors through price signals rather than threatening the dollar.
Crypto influencer @AshCrypto posted on X: "Gold is crashing hard, Bitcoin is surging. New Fed chair Kevin Warsh is bullish on Bitcoin. He's likely the catalyst for this rotation."
Warsh's nomination still requires Senate confirmation, and it remains to be seen whether he will enact policies that support crypto assets. Experts caution that short-term reactions may reflect sentiment alone and urge investors not to overinterpret the move as a long-term trend.