Trump picks Kevin Warsh for Fed chair, bitcoin drops

Crypto fell on potential Fed pick Warsh; his mentor advises markets took the news wrong.

  • Risk markets, including cryptocurrency, fell sharply following reports of Kevin Warsh’s potential nomination for Federal Reserve Chairman.
  • Billionaire investor Stanley Druckenmiller refutes the notion that Warsh is strictly hawkish, stating he’s seen him “go both ways.”
  • Druckenmiller highlights the ideal partnership between Warsh and prospective Treasury Secretary Scott Bessent, both of whom are his close associates.

Markets reacted with immediate volatility to a leaked report that former Fed Governor Kevin Warsh is President Trump’s choice to lead the Federal Reserve. Consequently, cryptocurrency prices tumbled, with Bitcoin briefly falling back to $81,000 on the news. However, Stanley Druckenmiller, a billionaire investor and close mentor to Warsh, challenged the prevailing market narrative in an interview with the FT on Friday.

- Advertisement -

“The branding of Kevin as someone who’s always hawkish is not correct,” stated Druckenmiller. “I’ve seen him go both ways.” Druckenmiller, who has employed Warsh at his Duquesne Capital Management since 2011, speaks with him constantly. Meanwhile, Druckenmiller also has deep ties to Scott Bessent, Trump’s reported pick for Treasury Secretary, having hired him decades ago at the Quantum Fund.

This unique relationship triangle is seen as a major policy advantage. “I’m really excited about the partnership between [Warsh] and Bessent,” Druckenmiller said. He emphasized that an accord between the nation’s top monetary and fiscal officials is ideal for market stability. Their shared philosophy, shaped by Druckenmiller, was detailed in a Financial Times profile last year.

✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.

Previous Articles:

- Advertisement -

Latest News

Idle GPUs Key to Easing AI Compute Crunch

GPU prices for AI workloads have surged dramatically, with the NVIDIA RTX 5090 up...

Base Ditches Optimism, AI Exploits Surge

Base, founded by Coinbase, is leaving the Optimism stack to build its own chain,...

Bitcoin Whales Amass Holdings While Exchange Outflows Spike

Large Bitcoin holders, or "whales," have rebuilt their reserves to levels last seen before...

MSTR Rebounds as Bitcoin Holds Above $67,000

MicroStrategy stock is up 8% this week to $132, signaling a potential rebound after...

Bitcoin surges after Supreme Court limits Trump tariffs

The Supreme Court ruled that most of President Donald Trump's tariffs were imposed by...

Must Read

7 Best Cryptocurrency Lending Platforms in 2025 (Ranked & Reviewed)

QUICK LINKSOur MethodologyHow to Choose the Best Crypto Lending Platform: Key Factors to ConsiderIn-Depth Reviews of the 7 Best Crypto Lending Platforms1. Nexo -...
🔥 #AD Get 20% OFF any new 12 month hosting plan from Hostinger. Click here!