Bitcoin often drops during Fed chair changes; new chair Kevin Warsh faces 3.5% rates with one cut expected in 2026.

Bitcoin has historically sold off during transitions of Federal Reserve chairs, with significant drops under Janet Yellen, Jerome Powell's first term, and his second term confirmation. Kevin Warsh takes over on May 15 with interest rates at 3.50% and only one rate cut projected for 2026, creating a potentially tough environment for risk assets like Bitcoin. Despite recent institutional outflows, Bitcoin reclaimed $78,000, but must hold above $76,000 and break $82,000 to signal a trend reversal and break the historical selloff pattern during Fed leadership changes.