With Federal Reserve Chairman Jerome Powell’s term nearing its end, his successor is expected to be Kevin Warsh, President Donald Trump’s nominee.
While Warsh is expected to receive confirmation from the US Senate, a social media influencer claimed that Bitcoin always falls during changes in the Federal Reserve Chair.
Ted Pillows, a prominent figure in the cryptocurrency world, argued in a post on his X account that Bitcoin (BTC) has historically always fallen during periods of leadership change at the Federal Reserve.
Pillows analyzed the changes in Bitcoin since Janet Yellen became chair.
Accordingly, it was noted that BTC fell by 84% in the months following Janet Yellen’s appointment as FED Chair in January 2014.
Similarly, Bitcoin fell by 73% when Jerome Powell took office in February 2018, and by 61% when Powell was reappointed for a second term in May 2022.
Pillows stated that Bitcoin is negatively affected by changes in FED Chairpersons, and added that he was curious to see what would happen to the BTC price with Kevin Warsh becoming the chair.
“1) January 2014: Janet Yellen became the Chair of the FED – BTC lost 84% of its value.
2) February 2018: Powell became the FED Chairman. – BTC lost 73% of its value.
3) May 2022: Powell begins his second term. – BTC loses 61% of its value.
Now, Kevin Warsh is expected to become the FED chairman next month.
Will history repeat itself, or will this time be different?
As is known, current Fed Chairman Jerome Powell’s term will end on May 15. US President Donald Trump nominated Warsh as the next Fed Chairman, but the nomination has not yet been confirmed by the Senate.
If the confirmation process is not completed by then, Powell is expected to continue in his role as interim chairman. Even though Powell’s term as chairman ends, his term as a member of the FED Board of Governors extends until January 2028. This allows Powell to remain on the FED Board of Governors.
*This is not investment advice.