Crypto and crypto markets retreated on Tuesday after Federal Reserve Chairman Kevin Warsh said US President Donald Trump never called for him to cut interest rates when he takes the helm at the central bank.
Speaking before the Senate Banking Committee, Warsh emphasized the Federal Reserve’s independence and pushed back speculation about political pressure on interest rate decisions.
“I’ve never told the president where I think the rates should be … and I wouldn’t have even thought about doing that,” Warsh said.
Trump has repeatedly called for lower interest rates, put pressure on current Fed Chairman Jerome Powell and raised concerns about the central bank’s independence.
Warsh also struck a constructive tone on crypto, saying that digital assets are “already part of the fabric of our financial services industry.”
Trading just below $77,000 earlier in the session, BTC fell to around $75,500 during Warsh’s hearing, about 0.6% lower over the past 24 hours.
The move reflected broader markets. The Nasdaq and S&P 500 both fell about 0.5%, giving up early gains as investors digested signals on monetary policy.
Crypto-related stocks fell more. Exchange Coinbase (COIN) fell 5%, while Robinhood (HOOD), a retail brokerage with significant exposure to crypto trading, fell 3.5% during the session. Galaxy ( GLXY ), a digital asset investment firm, fell 4.5%, while stablecoin issuer Circle ( CRCL ) was almost 6% lower.
Although Warsh’s remarks suggested he felt less urgency to cut rates, he would likely still favor lower rates as chairman, according to Matt Mena, senior crypto research strategist at asset manager 21shares.
“While [Warsh] maintains a reputation for fiscal discipline, he has spent years arguing that the central bank’s reliance on lagging data has kept rates unnecessarily high, stifled growth and created market volatility,” Mena said in a note.
He added that Warsh’s appointment could also prove positive for crypto policy, noting that he would be the first Fed chair with deep ties to the digital asset industry. Warsh has invested in dozens of crypto and decentralized finance (DeFi) projects and considers bitcoin “the new gold for people under 40,” he added.
Looking to the second half of 2026, Mena argued that more proactive easing could create a “high liquidity environment” that has historically supported risk assets like bitcoin, potentially pushing prices back towards $100,000.
