Fed ends tightening as Bitcoin hovers near $63K ahead of new hawkish chair

The Federal Reserve has ended its quantitative tightening programme and resumed short-term Treasury purchases. This move, announced in December 2025, aims to stabilise liquidity conditions better than in past transitions. Meanwhile, Bitcoin’s price lingers near $63,000 as a new Fed chair takes over in May 2026. The Fed’s policy shift came after months of tightening, with short-term Treasury purchases designed to prevent liquidity shortages. Unlike previous transitions, this approach keeps baseline conditions steadier.

A leadership change is also underway. Kevin Warsh, known for his hawkish stance, will chair the Fed starting in May 2026. His arrival coincides with Bitcoin trading well below its $125,000 peak, despite record highs in equities. Historically, Bitcoin has suffered steep declines—83%, 84%, and 77%—after the last three Fed leadership changes.

The June FOMC meeting will be closely watched for signals on Warsh’s policy direction. Rising inflation hints at a potential tightening bias. However, former President Trump has publicly pushed for rate cuts, adding uncertainty to the Fed’s next steps. The Fed’s new chair and policy path will likely shape Bitcoin’s performance in the coming months. If history repeats, tighter liquidity could pressure risk assets further. For now, traders are waiting for clearer signals from the June meeting.