Kevin Warsh’s potential influence on Fed policy signals a tougher stance on inflation and monetary discipline.
Markets read Warsh as favoring higher real rates and less tolerance for loose financial conditions.
That outlook pressures risk assets in the short term, including equities and crypto.
Bitcoin often reacts negatively to hawkish signals because liquidity tightens and leverage drops.
Still, longer term clarity from the Fed can reduce uncertainty, which supports stronger market structure.
If rates stay high but predictable, crypto investors shift focus to fundamentals and real adoption.
Under a Warsh-style policy outlook, expect near term volatility in crypto and selective strength in high quality coins.
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