Warsh Takes Over as Fed Chair in June; Bitcoin Faces Historical Correction Cycle, But Easing Liquidity May Support Rally

According to market expectations and recent statements, Kevin Warsh will take over as US Federal Reserve chairman in June, replacing Jerome Powell. Historical data shows Bitcoin typically experiences a price correction lasting several months after a new Fed chair takes office, followed by a stronger upward trend.

President Donald Trump stated he would be disappointed if Warsh did not cut interest rates at his first meeting, though market expectations are for rates to remain unchanged. However, James Lavish, a partner at Bitcoin Opportunity Fund, noted that quantitative tightening has effectively ended, with the Fed adding approximately $200 billion worth of US Treasury bonds to its balance sheet in recent months. Lavish argued this signals looser liquidity conditions that could support risky assets. Analysts caution that near-term volatility is possible, but changing liquidity conditions may pave the way for a medium-term rally.