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Bitcoin prices have declined despite the appointment of pro-crypto advocate Kevin Warsh as a Federal Reserve chair, as rising short-term bond yields and Warsh's past hawkish remarks reignite concerns about a potential December interest rate hike. Market participants are reassessing risk appetite, with crypto assets often viewed as volatile and sensitive to monetary policy shifts. The Federal Reserve's tightening cycle, which began in 2022, has historically pressured digital assets due to higher borrowing costs and reduced liquidity. Traders are now monitoring upcoming Fed meetings and economic data for clues on the trajectory of rate hikes, which could further impact Bitcoin's recovery. For MENA investors, the interplay between U.S. monetary policy and crypto markets remains critical, especially as Gulf-based traders increasingly allocate capital to digital assets amid regional regulatory developments.
