"Will cut off the money supply"...Trump's words, a variable that could sway the Bitcoin market

▲ Bitcoin (BTC) and cash

Kevin Warsh, nominated by US President Donald Trump as the next Federal Reserve Chairman, is emphasizing a tight liquidity stance, creating tension across the virtual asset market.

According to CryptoPotato, a virtual asset specialized media outlet, on April 22 (local time), Warsh attended a Senate confirmation hearing and emphasized the necessity of quantitative tightening, centered on reducing the Federal Reserve's balance sheet and absorbing liquidity. He diagnosed that the era of unlimited liquidity supply was entering its final phase and mentioned the need to normalize the asset market structure.

Signals of liquidity tightening have complex effects on the virtual asset market. A decrease in liquidity raises the possibility of a slowdown in capital inflow into Bitcoin (BTC) and major altcoins, which are classified as risky assets. Conversely, the fact that Warsh holds a virtual asset portfolio worth $130 million further complicates market interpretation.

Warsh evaluates Bitcoin as a key indicator showing the precursors of inflation and recognizes it as an important signal for understanding macroeconomic trends. While liquidity contraction may cause short-term price adjustments, analysis suggests that it could serve as an opportunity to strengthen its position as a store of value in the long term.

Currently, Bitcoin is moving around the $79,000 mark and attempting to break through $80,000. In April, approximately $2 billion flowed into Bitcoin spot ETFs, maintaining a solid supply and demand base. If Warsh's policy direction leads to inflation control and restoration of financial trust, the speed of institutional capital inflow is likely to accelerate further.

Warsh's nomination as Federal Reserve Chairman is considered a significant turning point in the process of integrating the virtual asset market into the institutional framework. With policy directions based on an understanding of digital assets being presented, Bitcoin's status as a macro asset is becoming increasingly prominent.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*