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Bitcoin slips as Fed chair speculation hits risky assets
['Tom Westbrook', 'Rae Wee']
Zawya.com - All Regional News
SINGAPORE - Bitcoin slumped to a two-month low on Friday as speculation the next chair of the U.S. Federal Reserve might tighten up on cash in the financial system hit cryptocurrencies and lifted the dollar.
Selling gathered pace on intensifying speculation that former Federal Reserve Governor Kevin Warsh was about to be anointed as Trump's pick to replace Fed Chair Jerome Powell.
Warsh has called for regime change at the central bank and wants, among other things, a smaller Fed balance sheet.
Bitcoin and other cryptocurrencies have been regarded as beneficiaries of a large balance sheet, having tended to rally while the Fed greased money markets with liquidity - a support for speculative assets.
Ether also skidded to a two-month low and traded 2.9% lower at $2,735.48.