PANews reported on February 2nd, citing Cointelegraph, that US President Trump nominated Kevin Warsh as the new Chairman of the Federal Reserve. Market analysts believe this nomination sends a complex signal to the cryptocurrency market and dollar liquidity. Thomas Perfumo, a global economist at Kraken, stated that Warsh's nomination may mean the Fed will continue its rate-cutting path, but it also foreshadows broader market liquidity expected to "stabilize rather than expand significantly." This introduces uncertainty into the macroeconomic backdrop, which is sensitive to Bitcoin and cryptocurrencies. He also noted that investors may be disappointed by Warsh's skepticism regarding balance sheet expansion (such as quantitative easing).

Nic Puckrin, co-founder of the education platform Coin Bureau, analyzed that Warsh's nomination has triggered investor concerns about a liquidity crunch, which is the main reason for the recent widespread decline in cryptocurrencies, stocks, and precious metals. If Warsh does indeed implement a policy of shrinking the balance sheet, the market will have to cope with a less liquid environment, which is detrimental to risk assets. The market is currently still focused on Warsh's interest rate policy and the extent to which it will respond to Trump's desire to lower interest rates.