President Donald Trump nominated Kevin Warsh to be the new chairman of the Federal Reserve.
The president confirmed his choice in a post on Truth Social on Friday to replace incumbent Jerome Powell when his term ends in May.
Warsh served on the Board of Governors of the US central bank between 2006 and 2011, the youngest person to do so.
He was considered the favorite to be chosen by Trump, something that may have played a role in the development of bitcoin. fell to nearly $81,000 on Thursday night, as odds on Warsh’s nomination rose on betting sites.
Warsh was an investor in a cryptocurrency project called Basis, which described itself as an algorithmic central bank. He has also served as an advisor to Electric Capital, a venture capital firm focused on cryptocurrency, blockchain, and fintech.
However, his appointment is seen by some as bearish for risk assets like BTC, given his emphasis on monetary discipline, which could mean higher real interest rates.
Bitcoin enjoyed a brief 0.7% rise immediately following Trump’s announcement before returning to the $82,600 mark it was previously at, according to data from CoinDesk.
UPDATE (January 30, 12:25 UTC): Add more details and context throughout.
