How Trump’s protégé turned the market around

BTC/USD

Key zone: 67,500 - 75,000

Buy: 75,000 (on a pullback after retesting the 70,000 level) ; target 80,000-83,500; StopLoss 73,500

Sell: 67,500 (on strong negative fundamentals) ; target 63,500-61.500; StopLoss 69,000

A single personnel decision by the White House rewrote the crypto market scenario within hours. On March 4, 2026, the U.S. administration officially nominated Kevin Warsh, a supporter of digital assets, for the position of Chairman of the Federal Reserve. The nomination has been sent to the Senate, while Powell’s current term expires on May 15, 2026.

For markets, this event became a signal of a potential shift in the monetary regime. The news triggered a classic reaction: “sell the rumor, buy the news.”

When rumors about Warsh’s possible appointment first appeared, the market interpreted it as a liquidity risk and reacted with a decline. But once it became a confirmed fact, bitcoin delivered the standard risk-off reaction.

As early as the morning of March 4, bitcoin was trading in the $67,000–68,000 range, and analysts were debating the possibility of a correction to $65,000. But at 16:30 Washington time the White House released a short statement: Kevin Warsh had been appointed Chairman of the Federal Reserve for four years. Within an hour bitcoin broke above $70,000 and by evening reached $73,413.

The market capitalization of the leading cryptocurrency increased by $123 billion in a single day. A real battle began in the derivatives market.

Traders betting on a decline were caught off guard and were forced to close positions at any price, accelerating the upward spiral. Liquidations during this short squeeze exceeded $500 million.

Investors began to say that markets were becoming puppets in the hands of politicians: now any appointment or any phrase from Washington can wipe out months of technical analysis and force traders to chase a new trend.

Reminder:

Kevin Warsh is a former member of the Federal Reserve Board and a representative of a more “market-oriented” camp that:

• criticized ultra-loose policy after the pandemic;
• advocated reducing the Fed’s balance sheet;
• allows for interest-rate cuts in the coming years.

This combination makes him a macroeconomically ambivalent figure for all risky assets, including crypto assets.

Why is the crypto market so sensitive to the figure of the Fed chairman?

There are only three key factors of influence.

Global Dollar Liquidity (GDL)

Warsh has repeatedly spoken about the need to reduce the Fed’s balance sheet, while crypto assets grew during the era of QE. If this course is implemented, we should expect a decline in dollar liquidity and increased pressure on BTC and altcoins.

Interest rates

Analysts believe that under the new Fed chair the regulator may cut rates by roughly 100 basis points within a year. For the crypto market this means lower real yields and cheaper capital along with higher risk. BTC would be forced to rise.

Political support for the crypto industry

The market reaction is tightly linked to the regulator’s real actions, so it is still difficult to assess the impact unambiguously. But there will likely be fewer speculators in the market for major tokens.

And what is the result?

The very fact that a single personnel decision can so sharply reverse markets forces investors to reconsider their strategies. Previously, cryptocurrency was considered an asset weakly correlated with political events. Now everything has changed.

Capital has flowed from a classic safe-haven asset into a digital one — and the trigger was precisely a political decision.

For now the market is reacting not with direction, but with volatility. Investors will have to take into account not only inflation and employment data but also political decisions. For bitcoin, the coming days will be a test: whether it can hold above $73,000 or whether a correction triggered by profit-taking will follow.

So we act wisely and avoid unnecessary risks.

Profits to y’all!