Warsh, a former Federal Reserve governor who served from 2006 to 2011, would replace current Chair Jerome Powell if confirmed by the Senate. Powell’s term ends in May. Trump has repeatedly faulted Powell since 2018 for maintaining what the president views as overly restrictive monetary policy, emphasizing in public remarks and social-media posts that lower interest rates might have accelerated economic growth. Warsh has not yet outlined a detailed policy agenda, but his previous comments have suggested support for a rules-based framework that could adjust interest rates more proactively in response to economic conditions.
The Senate Banking Committee is expected to schedule confirmation hearings after returning from recess next month. Lawmakers on both sides of the aisle signaled they would scrutinize Warsh’s views on inflation control, balance-sheet reduction, and the pace of potential rate cuts. Until a vote occurs, Powell will continue to lead the central bank and oversee its next policy meeting, set for late March.
Cryptocurrency markets were already on edge from broader commodity volatility. Just one day earlier, spot silver suffered its steepest single-session percentage loss since March 1980. Prices fell 28% to $83.45 an ounce, while silver futures on the Comex settled 31.4% lower at $78.53. The sell-off erased nearly two months of gains driven by speculative buying and renewed concerns about industrial demand. Analysts attributed the sudden reversal to large institutional players liquidating positions amid shifting expectations for global manufacturing output.
Retail traders, many of whom had shifted between silver and digital assets during recent bouts of market turbulence, saw losses compound across both arenas. Margin calls triggered by Friday’s silver slide forced some investors to raise cash, prompting additional selling in cryptocurrencies during Saturday’s thinly traded evening session. Several major exchanges reported elevated outflows to personal wallets, a move typically associated with risk reduction.
The simultaneous declines underscored the increasingly interconnected nature of alternative investments. Although silver and bitcoin serve different economic purposes—one as a physical commodity with industrial applications, the other as a decentralized digital token—they often attract overlapping retail audiences drawn to assets perceived as outside mainstream financial systems. Volatility in one market can therefore reverberate quickly across the other as investor sentiment shifts.
While Saturday’s moves erased more than $100 billion from the combined market value of the three largest cryptocurrencies, year-to-date performance remained positive. Bitcoin is still up roughly 57% since January 1, bolstered by accelerated adoption from corporate treasuries and exchange-traded funds that give traditional investors easier access. Ethereum and Solana are up 41% and 66% respectively for the same period, buoyed by expectations for network upgrades and decentralized-finance activity.
Looking ahead, traders will focus on macroeconomic data releases—including next week’s Consumer Price Index—and any signals from Federal Reserve officials about the path of interest rates. A more accommodative stance could revive demand for risk assets, though persistent inflationary pressures may limit the central bank’s ability to ease aggressively. In addition, confirmation hearings for Warsh are likely to generate headline risk as senators probe his views on monetary independence and digital-currency regulation.
Some analysts noted that bitcoin’s technical picture remains constructive despite the overnight drop. The token continues to trade well above its 50-day moving average of roughly $69,000, a level widely viewed as intermediate support. However, continued dollar strength and unresolved questions about the Fed’s leadership could keep volatility elevated in the near term.
On the metals front, attention will turn to whether silver can stabilize after Friday’s rout. Historical data compiled by the U.S. Mint show that dramatic single-day declines often precede periods of subdued trading volume as participants recalibrate positions. A sustained recovery could alleviate some of the pressure on retail portfolios and potentially stem cascading liquidations in correlated risk assets.
For now, the confluence of a leadership transition at the Federal Reserve, abrupt commodity price swings, and delicate investor sentiment appears poised to set the tone across digital and traditional markets. With bitcoin struggling to reclaim the $80,000 mark and silver searching for a floor, traders are bracing for another week of rapid moves driven by policy headlines and shifting macroeconomic expectations.
Crédito da imagem: Michael Nagle | Bloomberg | Getty Images
