Fed Chair Warsh Swung Bitcoin Both Ways in Two Weeks

On June 17, at his first FOMC meeting as Fed Chair, Kevin Warsh (sworn in May 22) held the federal funds rate steady at 3.5–3.75%, but the tone was hawkish: the 2026 PCE inflation forecast was revised up to 3.6%, with the median rate path now pointing to 3.8% by year-end. The Fed dropped forward guidance and signaled that a hike, not a cut, could be the next move, Crypto Briefing reports. Bitcoin dropped 2–4% on the news, while Ethereum lost 2.5–3.5%.

Two weeks later, on July 1, the same Warsh said inflation risks "have come down" — and bitcoin immediately retook the $60,000 level, according to CoinDesk.

A personal detail worth noting: Warsh personally holds Solana and has previously backed a Bitcoin payments company, but at his first meeting in the new role he made a visible effort to draw a line between his personal portfolio and his institutional mandate, MEXC News notes.

Crypto markets in 2026 have grown noticeably sensitive not just to macro data itself, but to the rhetoric of one specific person holding the Fed chair — the same week can bring both a selloff and a rebound depending on a single sentence.

This article is for informational purposes only and does not constitute investment advice.