Bitcoin Under $80,000: Warsh Confirmed As Next Fed Chair—Here’s The Likely Impact

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<a href="https://jpykr.com/btc-usd/">Bitcoin</a> Under $80,000: Warsh Confirmed As Next Fed Chair—Here’s The Likely Impact

Bitcoin’s price dropped significantly on Wednesday, falling below the important $80,000 level. This support level had previously helped drive the price up to its highest point this year.

The recent market decline coincides with the confirmation of Kevin Warsh as the new Federal Reserve chair, leading to speculation about potential changes in economic policy.

Warsh’s Confirmation

According to market expert Sam Daodu, if appointed, Warsh would be the first Federal Reserve chair to personally own cryptocurrency. Daodu highlighted that Warsh has even called Bitcoin “the new gold for people under 40.”

Daodu also pointed out a key opposing viewpoint. He explained that Warsh is known for being relatively aggressive within the Federal Reserve, especially when it comes to quantitative easing (QE). He added that President Trump is pushing for Warsh to lower interest rates immediately.

Despite political pressure to lower interest rates quickly, the market isn’t fully on board. Following today’s higher-than-expected inflation report, traders are now predicting around a 39% chance of interest rates actually *increasing* instead of decreasing.

Considering this situation, Daodu explained several things that could influence Bitcoin’s reaction to Warsh’s new role—particularly because Bitcoin’s price could change significantly based on the signals Warsh sends about future policies.

Daodu described two possible directions the Federal Reserve could take, both of which would influence how the market anticipates things will unfold throughout 2026.

Bitcoin Risk Hinges On Two Fed Paths 

According to Edward Jones economist James McCann, if inflation remains high—a likely scenario he describes as ‘hawkish’—the Federal Reserve will probably avoid making any interest rate changes for several meetings, and possibly not at all through the end of 2026.

If Warsh indicates that a 3.8% inflation rate is too high and the Federal Reserve will maintain its current policies for longer, Bitcoin’s price could fall below $78,000 – a key support level based on its 200-day moving average.

Daodu suggests a more positive outcome could arise if Warsh’s point about AI boosting productivity is considered. This could support the idea of lowering interest rates, even with high inflation. If this happens, Daodu believes Bitcoin could rise again, potentially reaching between $82,000 and $85,000.

The upcoming Federal Open Market Committee (FOMC) meeting probably won’t be the biggest factor moving markets. According to Daodu, investors have already anticipated the Fed is likely to hold steady at that time.

According to CME FedWatch, there’s about a 70% chance the Federal Reserve will keep interest rates steady between 3.50% and 3.75% in June, while a small 28% chance exists for a quarter-point rate cut. However, Daodu believes the more important question is whether comments from Kevin Warsh will affect expectations for future rate changes.

Revised Dot Plot Vs. Surprise Cut

Daodu believes Bitcoin’s price could be significantly affected by one of two possibilities. The first is an unexpected interest rate cut, which currently has about a 28% chance of happening. If this occurs, Daodu predicts Bitcoin could rise to between $85,000 and $88,000, suggesting the rate cut would happen before inflation decreases.

Another possible result is the Federal Reserve signaling a stricter approach, along with updated forecasts. According to Daodu, the June meeting will feature a new Summary of Economic Projections, including a ‘dot plot’ that reveals each Fed member’s expectations for future interest rates.

If Federal Reserve officials signal they expect to make fewer interest rate cuts in 2026, Bitcoin’s price could drop below $78,000. Analyst Daodu believes this scenario is particularly risky, as it could solidify expectations of stricter monetary policy, regardless of what any individual official, like Warsh, might prefer.

Featured image created with OpenArt, chart from TradingView.com 

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2026-05-14 14:57