Trump Never Asked For Rate Cuts, Says Walsh
Cryptocurrency and crypto markets pulled back on Tuesday as Kevin Warsh, Federal Reserve chair nominee, said in a Senate hearing that U.S. President Donald Trump never demanded that he cut rates when he takes the helm at the central bank.
Trading just below $77,000 earlier in the session, Bitcoin slipped to around $75,500 during Warsh’s hearing, some 0.6% lower over the past 24 hours.
Speaking before the Senate Banking Committee, Warsh reiterated the independence of the Fed, resisting speculation about political pressure on interest rate decisions.
“I never said to the president where I think rates should be… and I wouldn’t have even thought about doing so,” Warsh said.
President Trump has repeatedly called for lower rates, putting pressure on current Federal Reserve Chair Jerome Powell. This has led to concerns that central bank may not be independent.
Upbeat on Crypto
In the hearing, Warsh was also positive towards crypto, saying that digital assets are “already part of the fabric of our financial services industry.”
Broader Market Risk-Off
Looking into the broader financial market, S&P 500 and Nasdaq also dropped, reflecting risk-off across the markets.
Crypto-related stocks declined more. Exchange Coinbase (COIN) was lower by 5%, while Robinhood (HOOD), a retail brokerage with significant crypto exposure, fell 3.5% during the session. Galaxy (GLXY), a digital asset investment firm, slid 4.5%, while stablecoin issuer Circle (CRCL) dropped nearly 6% lower.
The market decline is not particularly to cryptocurrencies, but it is part of a broad economic pullback influenced by Fed and the continuous global tensions between the U.S and Iran. Thus, bitcoin is trading more like a risk-sensitive asset that is influenced, most especially in global economic conditions and political turmoil.
Walsh Likely to Favor Lower Rates
While Warsh’s comments suggested that he didn’t think cutting rates was urgent, he is likely to favor lower rates as chairman, according to senior crypto research strategist at asset manager 21shares Matt Mena, in an interview with Coindesk.
“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, stifling growth and creating market volatility,” Mena said.
Walsh Appointment a Boon for Crypto
He added that the appointment of Warsh could also prove positive for policy on cryptocurrency, noting he would be the first Federal Reserve chairman with deep associations with the digital asset industry. Warsh has invested in numerous crypto and decentralized finance (DeFi) projects. He also views bitcoin as “the new gold for people under 40”, Mena said.
Looking towards the latter half of 2026, Mena ventured that a more proactive stance on easing could create a “high-liquidity environment”, which has historically supported risk assets like bitcoin, potentially raising prices back toward $100,000.
