The post Crypto Traders reduce Fed Rate Cut Bets as Expert Calls Warsh Dovish appeared on BitcoinEthereumNews.com.

Crypto traders have reduced expectations for a Fed rate cut this year as betting markets recalibrate following President Donald Trump’s nomination of Kevin Warsh as Federal Reserve chair. The shift reflects uncertainty over future monetary policy and debate over whether Warsh would support rate cuts or maintain a restrictive stance. This is significant as more rate cuts could boost the crypto market, just like it did last year when BTC rose to new all-time highs (ATHs).  Fed Rate Cut Bets Shift After Warsh Nomination Polymarket data show that traders now give a 27% chance of two Fed rate cuts this year. Meanwhile, there is a 25%, 18%, and 13% chance of three, one, and four rate cuts, respectively. This marks a turnaround since when Trump nominated Kevin Warsh as the next Fed chair, despite the U.S. president signaling that Warsh would lower rates.   Source: Polymarket Prior to Warsh’s nomination, crypto traders were betting on three Fed rate cuts this year, with a 27% chance at the time. However, with concerns that Warsh may be hawkish, these traders are now reducing their expectations. The BTC price is also notably down from a high above $80,000 since Warsh’s nomination. In an X post, Milk Road Macro noted significant confusion about whether Warsh is hawkish or dovish. This story is based largely on his five years as a governor of the Federal Reserve from 2006 to 2011, he said. Milk Road Macro stated that during the global financial crisis, Warsh was reluctant to cut rates due to concerns about inflation. It added that those views haven’t stood the test of time and argued that he has evolved his thinking, citing structural shifts such as artificial intelligence and productivity gains. Warsh had previously sounded the alarm over inflation risks, even when economic conditions were deteriorating.…

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Filed under: News - @ February 9, 2026 9:27 pm