Cryptocurrencies and crypto markets retreated on Tuesday as Federal Reserve chair candidate Kevin Warsh said US President Donald Trump never demanded he cut rates when he took over the central bank.
Speaking before the Senate Banking Committee, Warsh emphasized the independence of the Federal Reserve, rejecting speculation about political pressure on rate decisions.
“I never told the president where I think the rates should be… and I wouldn’t have even thought to do that,” Warsh said.
Trump has repeatedly called for lower interest rates, putting pressure on current Federal Reserve Chair Jerome Powell and raising concerns about the central bank’s independence.
Warsh also took a constructive tone on cryptocurrencies, saying that digital assets are “already part of the fabric of our financial services industry.”
Trading just below $77,000 early in the session, BTC fell to around $75,500 during Warsh’s hearing, down about 0.6% over the past 24 hours.
The move reflected broader markets. The Nasdaq and S&P 500 fell about 0.5%, giving up early gains as investors digested signals on monetary policy.
Cryptocurrency-related stocks fell further. Exchange Coinbase (COIN) fell 5%, while Robinhood (HOOD), a retail brokerage with significant exposure to cryptocurrency trading, fell 3.5% during the session. Galaxy (GLXY), a digital asset investment company, fell 4.5%, while stablecoin issuer Circle (CRCL) was down almost 6%.
While Warsh’s comments suggested he felt less urgency to cut rates, he would likely still favor lower rates as president, according to Matt Mena, senior cryptocurrency research strategist at asset manager 21shares.
“While [Warsh] maintains a reputation for fiscal discipline, has spent years arguing that the central bank’s reliance on lagging data has kept rates unnecessarily high, stifling growth and creating market volatility,” Mena said in a note.
He added that Warsh’s appointment could also prove positive for crypto policy, noting that he would be the first Fed chair with deep ties to the digital asset industry. Warsh has invested in dozens of cryptocurrency and decentralized finance (DeFi) projects and sees Bitcoin as “the new gold for people under 40,” he added.
Looking ahead to the second half of 2026, Mena argued that a more proactive easing stance could create a “high liquidity environment” that has historically supported risk assets like bitcoin, which could push prices back toward $100,000.
