Kevin Warsh Appointment Spurs Fed Fears, Tumbling Silver, Gold, and Bitcoin by 600,000 Million

The change in the Fed leadership this Friday and fears about independence after the appointment of Kevin Warsh sent silver, gold and Bitcoin tumbling, wiping out more than 600.000 millones de dólares in value in a single day, the worst drop since 2008 for silver.

“Why a selloff in gold and silver is dragging bitcoin down Bitcoin has long been lumped in with precious metals as a hedge against a weakening dollar”

@coindesk

El Periódico said silver had gained 58% since the start of January but fell close to 26% after European markets closed, while gold dropped near 10% and the move “ha espantado a los inversores.”

@coindesk

CoinDesk linked the selloff across gold, silver and bitcoin to the unwinding of the “debasement” trade, saying the same forces that lifted the basket are now pulling it down.

CoinDesk added that the new Federal Reserve chair, Kevin Warsh, struck a hawkish tone and that markets were pricing two quarter-point rate hikes by March 2027, lifting the Fed’s benchmark rate to 4.00% to 4.25%, while the U.S. dollar climbed 0.8% this week alone.

In El Periódico, analyst Adrián Hostaled of XTB tied Friday’s declines to profit-taking after a rally that “llegó a tocar cotas de 120 dólares” per ounce, and he framed it as part of a strategy based on a mass exit of assets in the United States.

El Periódico also quoted investment strategist Nanette Abuhoff Jacobson at Wellington Management, who said that “el oro no ha perdido brillo,” describing the move as “una recogida de beneficios tras un rally imparable.”

El Periódico

CoinDesk described the same selloff as a macro regime shift against hard assets, noting that higher rates lift real yields and make non-yielding assets like gold, silver and bitcoin “more expensive for foreign buyers.”

CoinDesk further said bitcoin’s role became awkward as it lagged metals on the way up but “is tracking them closely on the way down,” with gold down about 28% from its January 2025 record near $5,600 and bitcoin slipping to nearly $58,000.

El Periódico connected the market shock to a broader policy and political backdrop, saying another possible U.S. government shutdown loomed with funding set to “vence a medianoche este viernes,” and that the White House could face a partial shutdown from Monday if the House of Representatives did not vote in time.

“Las materias primas han vivido un batacazo histórico a lo largo de la jornada este viernes tras el cambio de mando en la Reserva Federal (Fed) este viernes y los temores de una pérdida de independencia dentro del banco central tras el nombramiento de Kevin Warsh”

El Periódico

El Periódico said the combination of “turbulencias en la Fed” and the shutdown risk created a “tormenta perfecta para los metales preciosos,” while also pointing to the debasement trade’s logic of shifting away from paper money toward scarce assets.

CoinDesk warned that as long as the Fed stays hawkish and the dollar stays firm, bitcoin would likely struggle to break away from the metals it has been compared to, tying the outlook directly to the pricing of rate hikes to 4.00% to 4.25%.

In parallel, El Periódico quoted Claudio Wewel of J. Safra Sarasin Sustainable AM arguing that silver’s revaluation could continue despite Friday’s setback, saying “la plata está ganando peso como metal monetario” and citing its lower storage cost and historical role in coinage.