President Donald Trump has nominated Kevin Warsh as the new chairman of the Federal Reserve.
The president confirmed his choice in an article on Truth Social on Friday to replace outgoing President Jerome Powell when his term ends in May.
Warsh served on the Board of Governors of the US central bank between 2006 and 2011, becoming the youngest person in that position.
He was considered Trump’s favorite, which may have played a role in the rise of Bitcoin. plunged to nearly $81,000 Thursday night, as Warsh’s nomination odds increased on betting sites.
Warsh was an investor in a cryptocurrency project called Basis, which described itself as an algorithmic central bank. He also served as an advisor to Electric Capital, a venture capital firm focused on crypto, blockchain and fintech.
However, his appointment is seen by some as bearish for risky assets such as BTC, given the emphasis on monetary discipline, which could lead to higher real interest rates.
Bitcoin saw a brief 0.7% increase immediately after Trump’s announcement before returning to the $82,600 mark where it previously stood, according to CoinDesk data.
UPDATE (January 30, 12:25 UTC): Adds more detail and context throughout.
