Bitcoin faces selloff as Powell exits, Warsh steps in May 2026

2 hours ago 1

## Market Snapshot

Bitcoin’s market prospects for May 2026 show current skepticism about reaching $115,000, priced at 0.1% YES for May 2. The potential for the price to exceed $66,000 by May 4 remains high, with a 99.8% YES pricing, indicating market confidence in surpassing this threshold.

## Key Takeaways

– Markets suggest a decrease in the likelihood of Bitcoin reaching $115,000 in May 2026 due to potential policy shifts under Warsh. – Current market conditions reflect uncertainty over Bitcoin surpassing $86,000 on May 2, with odds at 0.1% YES. – Confidence remains high for Bitcoin to stay above $66,000 by May 4, with 99.8% YES pricing, despite recent volatility.

## Article Body

Jerome Powell’s planned departure as Federal Reserve Chair in May 2026, followed by Kevin Warsh’s nomination, has introduced significant uncertainty in monetary policy. This transition has historically been linked to volatility in Bitcoin prices, as seen during past Fed chair transitions, including Yellen in 2014 and Powell in 2018. The Federal Reserve’s recent decision to maintain interest rates at 3.5%-3.75% amid internal debates on rate cuts has already triggered a Bitcoin selloff below $75,000. Kevin Warsh, noted for his hawkish stance on inflation, awaits Senate confirmation and has made some favorable comments about Bitcoin. This scenario mirrors previous market reactions to Fed transitions, suggesting potential short-term turbulence in Bitcoin markets.

## Market Interpretation

The news surrounding Powell’s exit and Warsh’s anticipated role appears to have a moderate impact on Bitcoin market expectations. The market perception of Bitcoin reaching $115,000 in May 2026 is consistent with a NO outcome, reflecting skepticism about achieving such a high price amid policy uncertainty. Similarly, the odds of Bitcoin hitting $86,000 on May 2 remain low, suggesting that immediate market sentiment does not support a significant price surge. The consistent pricing supportive of a YES outcome for a threshold of $66,000 by May 4 indicates a strong belief in the market’s resilience at this level.

## What to Watch

Key indicators to monitor include Warsh’s confirmation process and any policy remarks that might influence monetary policy expectations. The market will also closely observe macroeconomic data releases and any shifts in U.S. inflation management strategies. Additionally, institutional moves, such as large Bitcoin purchases or sales by prominent entities like MicroStrategy or BlackRock, may significantly influence market dynamics. Watch for geopolitical developments or regulatory news that could further impact Bitcoin’s trajectory.

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What Price Will Bitcoin Hit On May 2

Contract Odds Δ since publish Volume 24h