Bitcoin Eyes $80K as Fed Policy Hearing Fuels Rate Cut Speculation

Bitcoin Traders Target $80,000 Amid Fed Policy Speculation

Bitcoin traders are positioning for a potential rally to $80,000 as they seek clues on the future of US interest rates ahead of the Federal Reserve’s April meeting. Max Kahn, CEO of investment firm Digital Wealth Partners, told DL News that several tailwinds are aligning behind Bitcoin, including macroeconomic momentum and steady institutional demand.

Kahn highlighted $80,000 as a critical level where "resistance or profit-taking could occur" before the Fed’s Open Market Committee meeting on April 29.

Senate Grills Fed Nominee Kevin Warsh on Rates and Independence

Investors are closely analyzing the Senate’s Tuesday hearing with Kevin Warsh, Trump’s nominee to replace Jerome Powell as Federal Reserve Chair. Warsh, viewed as a crypto bull, faced intense questioning from lawmakers on interest rate policy, political influence, and the Fed’s future direction.

Jerome Powell’s term as Fed Chair ends on May 15. He has frequently clashed with President Donald Trump over interest rate decisions, with Trump repeatedly urging aggressive rate cuts.

Analysts Warn of Regime Change Impact on Bitcoin

Analysts told DL News last week that the transition in Fed leadership is the "single most important catalyst" for risk assets like Bitcoin, which relies on the central bank’s liquidity policies. Lower rates typically benefit risk-on assets such as cryptocurrencies.

"Risk assets are positioned for performance into year-end, and Bitcoin as a reserve-adjacent trade fits cleanly into that setup."

What Did Kevin Warsh Say During the Senate Hearing?

The Senate Banking Committee subjected Warsh to a rigorous interrogation on his potential leadership of the Fed. The 56-year-old former Fed governor avoided directly endorsing Trump’s calls for lower interest rates. No senator asked whether he supports immediate rate cuts.

When pressed on whether Trump had pressured him to commit to rate reductions, Warsh firmly denied any such request:

"The president never asked me to predetermine, commit, fix, decide on any interest rate decision."

He added that he would reject any attempt to politicize Fed decisions.

Senators Question Warsh’s Independence from Trump

Despite Warsh’s denials, senators expressed skepticism about his willingness to resist political pressure. Senator Elizabeth Warren, the top Democrat on the Banking Committee, warned:

[Trump] does not want an independent Fed, and in fact he has said, and I quote, ‘anybody that disagrees with me will never be Fed chairman.’

And he's made clear that you are his sock puppet, saying last week that interest rates will drop ‘When Kevin gets in.’

Trump has repeatedly criticized Powell for refusing to slash rates amid economic uncertainty driven by his administration’s foreign policies.

Warsh Signals Potential Fed Policy Shifts

During the hearing, Warsh outlined his vision for reforming the Federal Reserve, including:

• Reducing the central bank’s balance sheet
• Improving inflation measurement methods
• Reviewing the frequency of policy meetings
• Enhancing public communication strategies

Powell has not confirmed whether he will step down when his term ends on May 15.