How Will The New Fed Chair Affect Crypto?

Summary

David Duong discusses how the new Fed chair Kevin Warsh could reshape monetary policy, his view that the AI trade pullback is a buying opportunity, and why crypto can still perform alongside risk assets. He also highlights the need to watch two-year yields given hawkish signals from Fed governor Waller.

• Fed chair Kevin Warsh is seen trying to improve data collection and may eventually avoid a series of hikes, but governor Waller's hawkish shift makes near-term rate path uncertain.
• AI stock pullback is viewed as narrative digestion, not rotation; earnings are rising while multiples compress, keeping the trade attractive.
• Duong compares AI to an industrial revolution, not a dot-com bubble, and says the current weakness is a good time to get into AI names.
• Crypto could benefit from risk capital seeking asymmetric returns and can trade alongside AI and other risk assets without a pure sector rotation.
• The two-year Treasury yield is flagged as a key signal: one hike is manageable, but a series of hikes would be concerning.
• Overall macro backdrop supports a cautious but opportunistic stance, with AI still favored and crypto positioned to benefit from ongoing risk appetite.