Forecast for the next 15 days, Ethereum (and the entire cryptocurrency market) experienced a "bloodbath" when Kevin Warsh was nominated (by the end of January 2026), with Ethereum's single-day decline exceeding 11%.

If confirmed as the Federal Reserve Chair, extreme market panic triggered a sharp decline.

In simple terms, Warsh is seen as a typical "hawkish" figure, and his policy stance directly threatens the foundation supporting the crypto bull market—cheap money and a loose environment.

Warsh has consistently advocated for aggressively shrinking the Federal Reserve's balance sheet (quantitative tightening).

Logic: Cryptocurrencies (like Ethereum) are considered risk assets, and their prices are highly dependent on abundant liquidity in the market (i.e., "lots of money").

Warsh's stance on "balance sheet reduction" means the Fed will withdraw funds from the market. This market expectation is called the "Warsh Effect," fearing the end of the "cheap money era." Once liquidity tightens, funds will first exit high-risk crypto assets, causing prices to plummet.

Even without confirmation, panic sell-offs could occur in the past few days! #Gate广场五月交易分享
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