Trump Announces Kevin Warsh As Fed Chair Nominee—Why Did Bitcoin Dump To $83,000?

Group 1 - President Trump nominated Kevin Warsh to succeed Jerome Powell as Chair of the Federal Reserve, leading to a decline in Bitcoin prices below $83,000 [1] - Warsh's reputation as an inflation hawk and strong-dollar advocate suggests that his leadership could significantly alter market interpretations of Federal Reserve policy signals [2] - The announcement from Trump dampened expectations for rapid rate cuts, resulting in a spike in the dollar while precious metals and cryptocurrencies experienced sharp declines [3] Group 2 - Bitcoin has broken below the critical 2-day 200 EMA and SMA, which historically serve as support during bull markets [4] - Following a countertrend rally of approximately 21% to 22%, Bitcoin faced rejection in a heavy resistance zone between $95,500 and $106,800 [5] - A failure to reclaim these moving averages may indicate a shift into a more aggressive bearish phase, with a breakdown below the $79,000 to $80,000 support range potentially confirming a downtrend towards $75,000 to $70,000 [6] Group 3 - Momentum and money-flow indicators for Bitcoin remain weak, characterized by declining spot volume and reduced whale participation, limiting the likelihood of a sustained upside move in the near term [7]