September FOMC is coming – Bitcoin’s 2026 track record reveals why it’s bad news

On Friday, the 30th of January, 2026, U.S. President Donald Trump officially nominated former Federal Reserve governor Kevin Warsh to the post of Chair of the Federal Reserve.

Interestingly, Warsh had previously spoken favorably of Bitcoin [BTC] as a store of value and is considered pro-crypto in general. Regardless, the markets expected Warsh’s policy stance to be one of interest rate cuts as well as aggressive balance-sheet reduction.

Crypto markets had already shifted into a bearish regime and did not take Trump’s announcement favorably. Expectations of higher rates for longer led to a market rout.

Bitcoin fell by 7% from $84.6k to $78.7k. The wider crypto market recorded the highest liquidations for 2026, unsurpassed figures even now in August.

This price slide saw $2.407 billion in long positions liquidated across the market, compared to $154.7 million in short positions. The expected difference in leadership from the previous chair, Jerome Powell, led to uncertainty and sell-offs in crypto.

Though the chair is only one vote among twelve in setting the Federal Reserve’s target interest rate, the post’s influence on the decision is heavy.

What is the Fed interest rate, and why does it matter to crypto?