Bitcoin plunged to nearly $81,000 late Thursday as Kevin Warsh's odds surged in betting markets for the position of U.S. Federal Reserve chair. President Donald Trump hinted at announcing his nominee to replace Jerome Powell, whose term ends in May. While Warsh has occasionally praised cryptocurrencies, analysts now view his potential nomination as bearish for Bitcoin. According to Markus Thielen, founder of 10x Research, Warsh's focus on monetary discipline and higher real rates positions crypto not as a hedge against debasement but as a speculative excess that diminishes when liquidity tightens. Higher real interest rates typically discourage investment in risky assets like Bitcoin. During the global financial crisis, Warsh expressed concerns about inflation even as deflation loomed, which some argue exacerbated economic challenges. His hawkish tendencies clash with Trump's pro-risk asset approach, raising questions about the suitability of Warsh for the Fed. Observers worry that a Warsh nomination could undermine risk assets and bolster the dollar. Until Trump makes a final decision, Warsh's hawkish reputation may continue to unsettle market sentiment towards Bitcoin.