Warsh-Pick Triggers a Commodity Decline, Indirectly Instigates Crypto Market Plunge

• Commodities have plunged, crypto prices have dropped.
• Kevin Warsh’s selection could be one possible factor.
• Additional factors are India’s Budget 2026 and the US-Iran conflict.

Monday saw commodities decline and the crypto market fall in a possible response to the selection of Kevin Warsh as the next US Fed Chair. Also acting as additional factors are India’s 2026 Budget and the ongoing US-Iran conflict, triggering allocation to safer spaces as Gold & Silver lose their respective values too.

Warsh, and a Drop in Commodities & Crypto Market

US President Donald Trump’s next pick for the US SEC Chair is Kevin Warsh. There’s now a reaction from the market as expected, with a decline in commodities and a plunge across the global crypto market. A fall in commodities is led by losses in silver, gold, and oil.

According to a report by Reuters, choosing Warsh has triggered a trend of recording sales in risk assets. This, in an extension, includes the crypto market. There is a possibility of more sales in the next few days, especially in the crypto segment, even though select whale wallets are seen accumulating the dips.

For a quick reference, gold was last seen with a decline of 9% and silver with a fall of over 13%. Vivek Dhar, a commodities strategist at Commonwealth Bank of Australia (CBA), has said in a statement that investors view Warsh as more hawkish, adding that a stronger US Dollar is also adding pressure.

Momentum of Crypto Market

The global crypto market losing its momentum is largely evident from a fall of 3.20% in its market cap, which is currently hovering around $2.56 trillion. The FGI has shifted to 15 points with a fall to 30 points on the Altcoin Index, per CoinMarketCap. Top tokens, BTC and ETH, have shed 2.66% and 8.10% of their respective values.

For a quick reference, BTC is now trading at $76,433.96, and ETH is listed at $2,232.31. BNB and XRP are the next top tokens that have lost around 3.65% and 4.65% of their respective values over the last 24 hours. Notably, Kalshi Traders had earlier expressed bearish sentiment around BTC, saying that the flagship cryptocurrency could go as low as $64,000 this year.

Additional Possible Factors

Factors other than Warsh’s selection that might be contributing to the decline across the markets are India’s 2026 Budget and the US-Iran conflict.

Crypto enthusiasts in India were speculating on tax reliefs or a revised tax structure; however, both have been left unchanged. In fact, the budget has mentioned new penalties for non-compliance in crypto tax reporting. Experts have signalled that the focus could be more on compliance, considering India already dominates the crypto market in terms of adoption.

The US-Iran conflict has not cooled down. This has instilled a sense of uncertainty – making investors be more aware about their allocations to risky assets, crypto in this instance. The issue was last reported to be in talks.

Highlighted Crypto News Today:

CrossCurve Bridge Exploit Exposes $3 Million Loss in Cross-Chain Security Breach