Why is Bitcoin falling despite pro-crypto Kevin Warsh becoming Fed chair?

💡 DMK Insight

Rising bond yields and hawkish Fed signals are putting Bitcoin’s recovery at risk. With the market pricing in a potential December rate hike, traders should be cautious. Historically, when yields rise, risk assets like Bitcoin often face selling pressure as investors flock to safer havens. Warsh’s comments suggest the Fed is serious about curbing inflation, which could lead to tighter monetary policy. If Bitcoin can’t hold key support levels, we might see a significant pullback. It’s worth noting that if Bitcoin breaks below its recent support, it could trigger stop-loss orders and exacerbate selling. Traders should keep an eye on the 50-day moving average as a critical level. Also, watch for any shifts in sentiment from institutional players; their moves can create ripple effects across the crypto market. The next few weeks will be crucial as we approach December, so stay alert for any economic data releases that could influence Fed decisions.