Warsh Warns: Rising Interest Rates Threaten Bitcoin's Recent Surge

Bitcoin's recent surge may be coming to an end, according to Federal Reserve Chairman Kevin Warsh. In a speech at the Group of 20 meeting in Asheville, North Carolina, Warsh argued that cheap money is over and growth is picking up, leading to higher interest rates.

Warsh cited the example of artificial intelligence as a new project attracting significant investment, causing cash to chase opportunities and push borrowing costs up. This contradicts the long-held view that too much idle cash and too few good projects were keeping borrowing cheap.

Treasury Secretary Scott Bessent appeared alongside Warsh on Monday, denying claims that the government's bond buybacks were intended to artificially lower borrowing costs. However, critics argue that this move is having the opposite effect, with 10-year and 30-year US yields surging to 4.76% and 5.26%, respectively.