The First Pro-Bitcoin Fed Chair? Wall Street Just Got Very Confused.

You want irony? I’ll give you irony.

The market just tanked $10,000 on news that could be the most bullish development in Bitcoin’s 16-year history.

Kevin Warsh was nominated as Fed Chair yesterday. Bitcoin promptly fell to $81,000. Nearly $1 billion fled the ETFs. Crypto Twitter declared the sky was falling.

And Michael Saylor posted a video saying Warsh could be “the first pro-Bitcoin Chairman of the Federal Reserve.”

One of these reactions is wrong. I’m betting it’s not Saylor.

Here’s what most people missed while they were panic selling.

Kevin Warsh has said... on camera... that Bitcoin “doesn’t make me nervous.” He’s called it “an important asset that can help inform policymakers when they are doing things right and wrong.”

That wasn’t some throwaway comment. In his Hoover Institution interview last May, Warsh pushed back on the late Charlie Munger’s view that Bitcoin was “evil” because it undermines Fed control. Warsh’s response? Bitcoin “could provide market discipline” and serves as “a very good policeman for policy.”

He’s been consistent on this for over a decade. Back in 2015, he told Stanley Druckenmiller that Bitcoin was “getting new life as an alternative currency” when most of Wall Street still thought it was internet funny money.

Warsh isn’t hostile to crypto. He’s invested in crypto startups. He’s publicly criticized CBDCs as “at odds with the American ethos of privacy from government intrusion.”

So why did Bitcoin dump?

Because traders read “inflation hawk” in his Wikipedia bio and hit sell.

Here’s the thing they’re missing: the Warsh of 2008 isn’t the Warsh of 2026. He’s aligned himself with Trump’s push for lower rates. He’s spoken about establishing a new Treasury-Fed Accord. He’s evolved.

And he’s publicly stated that Bitcoin serves as a “good policeman for policy”... telling the world when the Fed is screwing up.

You know what happens when the Fed chair views Bitcoin as a useful signal rather than a threat?

That’s what the path to seven figures looks like.

Thursday was brutal. Nearly $1 billion yanked from Bitcoin and Ether ETFs in a single session. Bitcoin dropped below $85,000 before briefly touching $81,000.

Headlines screamed “worst outflows since August.”

You know what I call it? Spring cleaning.

This wasn’t institutions losing faith. This was overleveraged traders getting flushed. More than $777 million in leveraged longs got liquidated in one hour. $1.75 billion over 24 hours.

The synchronized selling across Bitcoin and Ether tells you this wasn’t about fundamentals. When everything sells together, that’s deleveraging. That’s weak hands exiting.

And then Friday happened.

Trump announced Warsh. Bitcoin stabilized around $84,000. The panic sellers realized they’d just dumped their coins because they read “inflation hawk” and didn’t bother to watch the guy’s actual interview where he calls Bitcoin “a very good policeman for policy.”

Here’s what matters: the people selling Thursday are the same people who would have panic-sold at $150,000 anyway. Better they leave now than during the real run.

Every leverage shakeout clears the field for the believers.

Because if today’s news doesn’t show you the $1M thesis playing out in real-time... I don’t know what will. A potential pro-Bitcoin Fed chair? The establishment finally acknowledging that Bitcoin serves a purpose in monetary policy?

I wrote this book for one reason: To give you the complete case—the data, the stories, the math—behind why Bitcoin is heading to seven figures. Not hopium. Not hype. Just facts.

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What you get:

This isn’t about convincing you to buy Bitcoin. It’s about giving you the information to make your own informed decision.

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Something interesting happened this week.

Gold screamed to $5,600 on Wednesday. Then pulled back hard. Bitcoin fell alongside it... but here’s the difference.

Gold’s rally was pure fear. Precious metals spiked on uncertainty. Then reality set in and profit-taking began.

Bitcoin’s drop was mechanical. Leveraged positions unwinding. ETF rotation. Traders reacting to Fed chair speculation before they understood who Warsh actually is.

But Bitcoin’s fundamental case just got stronger.

Think about it. The new Fed chair views Bitcoin as a useful signal for monetary policy. The guy who will control interest rates for the next four years has said... publicly... that Bitcoin can tell the world when central banks are doing things right and wrong.

That’s not an enemy at the gate. That’s grudging institutional respect.

Gold remains the old guard’s safe haven. Bitcoin is becoming the next generation’s. And when the guy running the money printer starts talking about Bitcoin as a policy tool rather than a threat...

Another brick in the road to $1M Bitcoin.

The market sold first and asked questions later. That’s what markets do.

But let’s step back and look at what actually happened this week:

A Fed chair nominee who has called Bitcoin “an important asset.” A massive leverage flush that cleared out weak hands. And Bitcoin recovering to $84,000 by Friday despite the chaos.

January has been rough. Four straight months of losses. The worst streak since 2018.

You know what happened after 2018? Bitcoin went from $3,000 to $69,000 in 2021... then to $126,000 last October.

Sometimes the pain is the setup.

The shorts are piling in. The headlines are bearish. And the next Fed chair thinks Bitcoin is a good “policeman for policy.”

I’ll take that trade.

See you Monday.

P.S. If you haven’t ordered “The Million Dollar Bitcoin” yet, do it now. This newsletter gives you headlines. The book gives you the complete thesis. Available on Amazon right now. Start reading today when it can still change your tomorrow, not “someday.”