‘The New Gold’—Sudden Fed Update Leaves Bitcoin Braced For A Huge Price Game-Changer
Bitcoin has bounced over the last few weeks, with traders reeling from a surprise BlackRock flip.
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The bitcoin price has surged 30% since hitting a recent low of $60,000 per bitcoin in February (helped by a former Federal Reserve chair issuing a shock hyperinflation warning).
Now, as traders bet on an imminent Elon Musk game-changer, bitcoin traders and crypto market watchers are scrambling to get ahead of incoming Fed chair Kevin Warsh’s confirmation hearing after the U.S. Department of Justice suddenly dropped its criminal investigation into outgoing Federal Reserve chair Jerome Powell.
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“I have directed my office to close our investigation as the [inspector general’s office] undertakes this inquiry,” Jeanine Pirro, Trump’s appointed U.S. attorney for the District of Columbia, said in a social media post, clearing the path for U.S. president Donald Trump’s nominee Warsh to be confirmed.
Earlier this week, Warsh described bitcoin and crypto as "already part of the fabric of our financial services industry in the United States," during a Senate banking committee hearing.
Warsh, who previously served on the Federal Reserve’s board of governors from 2006 to 2011 under Presidents George W. Bush and Barack Obama and previously worked as a banker at Morgan Stanley, has called bitcoin an “important asset that can help inform policymakers” and “the new gold for people under 40."
Ahead of this week’s hearing, Warsh’s financial investments were disclosed, revealing dozens of crypto holdings, including solana and optimism, as well as a stake in decentralized derivatives trading exchange dYdX, decentralized exchange protocol Lighter, venture capital company Polychain, and non-fungible token (NFT) company Dapper Labs.
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Forbes‘Massive’ U.S. Dollar Fed Warning Fuels Huge Bitcoin Price PredictionsBy Billy Bambrough“Kevin Warsh’s appointment would represent a historic shift for the digital asset industry, as he would be the first Federal Reserve chair with a deeply established personal and professional history in the digital asset ecosystem," Matt Mena, Senior Crypto Research Strategist at 21shares, said in emailed comments.
“For the markets, this means a Warsh-led Fed is likely to prioritize proactive rate cuts and a leaner balance sheet, creating a high-liquidity environment that has historically served as a powerful tailwind for both risk assets like bitcoin. Assuming an official end to the conflict in Iran comes soon, paired with Warsh’s ascent could be the catalyst needed to send bitcoin back to $100,000 in the first half of 2026.”
Some think that Warsh’s confirmation could signal the long-awaited crypto market structure bill known as the Clarity Act is moved forward with a Senate banking committee mark-up session.
“This is how dominos will fall for Clarity Act, [in my honest opinion],” Grayscale head of research Zach Pandl, posted to X.
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