Bitcoin drops below $76,000 after Kevin Warsh’s Fed appointment

The price of Bitcoin (BTC) fell below the $76,000 threshold on May 22, 2026, amid heightened volatility in the cryptocurrency markets. This decline follows Kevin Warsh’s appointment as head of the U.S. Federal Reserve (Fed), an event that has raised questions about the future direction of American monetary policy. Massive liquidations of long positions, exceeding $430 million in 24 hours, intensified selling pressure on Bitcoin, whose CryptoScore stands at 57/100. While the CryptoPotato article does not confirm a direct link between these two events, the temporal coincidence has fueled speculation among investors. What Happened Bitcoin hit an intraday low of $75,800 on May 22, 2026, according to CryptoPotato data, before stabilizing slightly above that level. Over $430 million in long positions were liquidated in a single day, primarily on futures contracts and derivatives. This trend reflects a recurring pattern in crypto markets, where sharp price movements trigger automatic liquidations, worsening volatility. Meanwhile, Ethereum (ETH) showed relative stability with a Sharpe ratio close to zero, contrasting with Bitcoin’s sharp decline. Why This Matters Kevin Warsh’s appointment to the Fed introduces uncertainty about future monetary policy, a key factor for risky assets like Bitcoin. Warsh, known for his moderate stance on cryptocurrencies, may adopt either a stricter or more accommodative approach, directly influencing liquidity and interest rates. A stricter monetary policy, marked by rate hikes, could weigh on Bitcoin, viewed as a speculative asset. Conversely, a looser policy could support crypto markets by encouraging liquidity inflows. Trading platforms and DeFi protocols may see reduced trading volumes, while stablecoins like USDC or USDT could see increased demand during turbulence. What to Watch The next statements from Kevin Warsh or Fed meeting minutes, which could clarify his intentions regarding monetary policy and its potential impact on Bitcoin. Key support levels for Bitcoin: a breakdown below $75,000 could trigger a drop toward $70,000, with further cascading liquidations. The reaction of altcoins and derivatives, whose movements could amplify or mitigate current volatility. Changes in trading volumes on centralized and decentralized platforms, an indicator of investor appetite for cryptocurrencies during stress periods. Regulatory adjustments in the U.S., which could influence the perception of cryptocurrencies as risky or legitimate assets. It is important to note that the CryptoPotato article does not establish a direct causality between Warsh’s appointment and Bitcoin’s decline. Other factors, such as technical liquidations or macroeconomic movements, may also explain this drop. Short-term market reactions are often fleeting, and a rapid stabilization of Bitcoin cannot be ruled out.