coverage endedMay 22, 2026, 9:26 PM

Bitcoin Falls as Warsh Takes Charge of the Fed

Kevin Warsh was inaugurated as the chairman of the Federal Reserve during a White House ceremony on Friday afternoon.

Kevin Warsh is sworn in as Fed chair (Getty images)

Market Prices Decline on Friday Afternoon

While no significant news has emerged, cryptocurrency prices are experiencing a downturn in the quiet trading session on Friday.

As the stock market approaches the end of the trading day prior to a three-day weekend, bitcoin (BTC) has retraced to $75,800, marking a 2.4% drop over the last 24 hours, its lowest point this month.

Other cryptocurrencies like ether (ETH), solana (SOL), and XRP (XRP) have seen even steeper declines than bitcoin.

Earlier this month, Tom Lee noted that if bitcoin could finish the month on a positive note, it would indicate three consecutive months of gains, a strong signal of a bull market. Bitcoin started May around $77,000, but the recent drop puts this trend at risk with over a week left in the month.

Currently, U.S. stocks are managing to hold onto slight gains, with the Nasdaq up by 0.3%.

Warsh Vows to Implement Changes at the Fed

Kevin Warsh has officially taken over as chairman of the U.S. Federal Reserve, succeeding Jerome Powell, who will remain with the Fed as a governor.

In his remarks during the swearing-in ceremony, Warsh stated, "I will lead a reform-oriented Federal Reserve, learning from past successes and mistakes, both escaping static frameworks and models, and upholding clear standards and integrity and performance today marks a return to an institution that I do in fact cherish."

As bitcoin continues to trade slightly below $77,000, stocks are still showing modest increases, with the Nasdaq up by 0.5%.

Throughout the week, bitcoin (BTC) has remained within a narrow trading range around the $77,000 mark during U.S. morning sessions.

This Friday morning brought some troubling economic news. The University of Michigan's Consumer Sentiment Index for May dropped to a record low of 44.8 from a previous 48.2, contrary to economists' expectations of 48.2. The Expectations Index also fell to a record low of 44.1.

The one-year Consumer Inflation Expectations Index from UMich increased to 4.8% from 4.5%, while the five-year Inflation Index rose to 3.9% from 3.4%.

These figures present another alarming stagflationary signal for Kevin Warsh as he prepares to lead the Federal Reserve. Appointed by President Trump, Warsh is expected to guide the central bank towards reducing interest rates, yet rising oil prices due to the Iran conflict have reignited inflationary pressures that were previously easing.

Market analysts now forecast more than a 70% likelihood of one or more interest rate increases occurring by the end of 2026.

Warsh's formal swearing-in ceremony is scheduled for 11 am ET.

Meanwhile, U.S. stocks are displaying modest gains ahead of the extended weekend, with the Nasdaq increasing by 0.3% and the S&P 500 up by 0.4%.

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