$BTC $ETH This isn’t an “inevitable crash,” but it is a high-probability risk event—especially for the crypto market.

Current Federal Reserve Chair Jerome Powell: his term expires on May 15, 2026.
Next Chair: Kevin Warsh. He has already passed a Senate procedural vote, and will be sworn in on May 15.
The historical “change-of-leadership curse” does exist. After the early-2026 news that “Warsh is coming in,” the crypto market has already gone through one round of decline.
When the actual handover happens on May 15, it may instead be the “shoe dropping”—with bad news already fully priced in.
Warsh is a typical hawk, even tougher than Powell. He openly criticizes QE and argues for shrinking the balance sheet first, then cutting interest rates.
He wants to abolish the “dot plot,” making policy more dependent on data and less predictable.
In one sentence: liquidity will get tighter, and the crypto market depends on liquidity the most.
And the crypto market is extremely sensitive to Federal Reserve policy.
When Warsh’s nomination news came out in February 2026: Bitcoin fell from 100,000 to 70,000 in 48 hours, a 30% pullback, and liquidations across the entire market totaled $2.5 billion.