The "Trump Effect" and Federal Reserve
Uncertainty Since the start of 2026, Bitcoin has surrendered a massive portion of its gains, falling nearly 28% this year. Market analysts point to the nomination of Kevin Warsh as Federal Reserve Chair as a turning point. Investors fear a "hawkish" Fed that will prioritize a smaller balance sheet, effectively draining the liquidity that speculative assets like crypto rely on. This macro uncertainty has pushed Bitcoin to its lowest levels since late 2024, erasing the optimism that followed the previous U.S. election cycles and causing a massive "risk-off" sentiment across all digital holdings.
