The statements made by Kevin Warsh, who was nominated for the presidency of the US Federal Reserve, to the Senate Banking Committee clarified the negative atmosphere felt in the cryptocurrency markets and general financial markets. In his speech, Warsh clearly stated that President Donald Trump did not request the Fed to reduce interest rates. Recently, Trump’s insistent defense of low interest rates has raised questions in the market about the independence of the Central Bank.
Central Bank independence and interest rate debates
Warsh’s statements signaled that the Fed will continue to determine policy away from political pressures. His statement, “I never told the President what level the interest rates should be at, it never even occurred to me to think about it,” drew attention in particular. These statements follow Trump’s recent pressure on the Federal Reserve.
“I never told the President what I thought about interest rates; I never even considered such an approach.”
Although Warsh’s emphasis on the independence of the central bank calmed the concerns of political pressure in the markets to some extent, it did not provide complete clarity regarding the bringing forward of interest rate cut expectations.
Approach to crypto assets and market impacts
Warsh signaled that the central bank may have a positive attitude towards digital assets. Emphasizing that cryptocurrencies are a natural part of the financial system, Warsh also came forward with comments that he has deep-rooted relationships in this field. Warsh, who is known to have invested in many crypto and decentralized finance (DeFi) projects for many years, described bitcoin as the “new gold” for investors under 40.
In the markets, Warsh’s statements brought about a general correction movement, especially in Bitcoin. Bitcoin, which was traded just below the $77,000 level at the beginning of the session, fell by 0.6 percent to approximately $75,500 after Warsh’s speech. CryptoAppsy According to data, this course of Bitcoin led investors to reconsider their interest and liquidity expectations.
Sharp declines in stock markets and crypto companies
Losses came to the fore not only in cryptocurrencies but also in crypto-focused company stocks. While Coinbase’s value decreased by five percent and Robinhood shares decreased by 3.5 percent, Galaxy Digital lost 4.5 percent and Circle lost nearly 6 percent. At the same time, an average decline of 0.5 percent was recorded in leading US stock market indices such as Nasdaq and S&P 500.
Matt Mena, senior research strategist at asset management company 21shares, underlined that Warsh will not take a hasty stance on interest rate cuts, but he may support lower interest rates if he becomes president. It was also evaluated that Warsh’s strong connections with digital assets could shape central bank policies in favor of crypto.
“Warsh has argued in the past that the central bank has hindered growth and caused market volatility by focusing too much on data. His presidency could create new opportunities for risky assets by increasing liquidity.”
Mena suggested that a bolder monetary easing policy in the second half of 2026 could lead to the return of the $100,000 level in assets such as bitcoin. However, in the short term, the market continues to fluctuate in the shadow of the Fed presidency debates.
