U.S. President Trump nominates former Federal Reserve Board member Kevin Warsh to succeed Fed Chair, and the market appears to be experiencing short-term capital rotation, with gold retreating and Bitcoin rebounding. Investors are focusing on future monetary policy and the trend of crypto assets.
(Background recap: Gold vs Bitcoin: 12 years of data tell you who the real winner is)
(Additional context: Trump-appointed Fed Chair Kevin Warsh on Bitcoin: It’s not a dollar substitute, but a “supervisor” of monetary policy)
After President Trump nominated Kevin Warsh to succeed as Fed Chair, the market seems to be experiencing capital rotation, with gold falling and Bitcoin rebounding, sparking investor attention on future monetary policy and the outlook for crypto assets.
Market Reaction: Gold Retreats, Bitcoin Rebounds
On January 30, U.S. President Trump announced the nomination of former Fed Board member Kevin Warsh as Federal Reserve Chair. Once the news broke, financial markets showed subtle changes: the recently skyrocketing gold prices retreated, briefly falling below the $5,000 mark, indicating profit-taking or capital shifting to other assets.
Meanwhile, during this gold decline, Bitcoin rebounded, with the price once surpassing $83,700. However, at the time of writing, Bitcoin has already pulled back to around $83,000, with a 24-hour decline narrowing to 2.2%.
Warsh’s Viewpoint: Bitcoin as a “Good Supervisor” of Monetary Policy
Market observers believe this phenomenon may be closely related to Warsh’s past positive stance on Bitcoin. Warsh has publicly stated that Bitcoin “doesn’t make him nervous,” and considers it an “important asset” that can provide market discipline, helping policymakers detect deviations in monetary policy. He described Bitcoin as “often a good supervisor of monetary policy,” warning of policy errors through price fluctuations, rather than threatening the dollar.
In response, crypto opinion leader @AshCrypto also posted on X platform: “Gold is DUMPING, Bitcoin is PUMPING. New Fed Chair Kevin Warsh is bullish on Bitcoin, so he’s very likely the catalyst that actually triggers the money rotation lol.”
Gold is DUMPING
Bitcoin is PUMPING
New fed chair Kevin Warsh is bullish on Bitcoin so he might the catalyst who actually starts the money rotation lol. pic.twitter.com/m4mebQIALY
— Ash Crypto (@AshCrypto) January 30, 2026
However, Warsh’s nomination still requires Senate confirmation. Whether he will truly promote the rise of Bitcoin or other crypto assets remains to be seen through actual policy actions. Experts warn that short-term market reactions may only reflect emotional swings, and investors should remain cautious to avoid over-interpreting single events as long-term trends.
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