Institutional Alert: S&P 500 Average Plunge of 16% After Fed Chair Change

BlockBeats News, February 3rd. Barclays pointed out that since 1930, in the six months following the appointment of a new Federal Reserve chairman, the S&P 500 index has experienced an average drawdown of about 16%, significantly higher than the normal pullback level. If Kevin Warsh takes office in May, US stocks may come under pressure again.

The report stated that a new chairman's tenure often faces a market "test" in the months following inauguration. After Trump nominated Warsh to replace Powell, US stocks declined, as the market viewed him as a less dovish choice.

Analysis believes that amid Federal Reserve independence disputes, high inflation, and simultaneous job slowdown, leadership changes will exacerbate monetary policy uncertainty. If Warsh pushes for balance sheet reduction, it may further drain liquidity, bearish risk assets; however, his asset-hawkish balance sheet stance may help suppress the gold price and temporarily support the US dollar.

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Institutional Alert: S&P 500 Average Plunge of 16% After Fed Chair Change

Binance SAFU wallet transferred out 7,500 BTC half an hour ago, possibly to replenish reserves for affected assets.

Galaxy Digital OTC transferred 47,000 HYPE, worth approximately $4.06 million, to OKX 4 hours ago.

An entity transferred approximately 1.223 million SOL to Coinbase Prime, valued at around $117 million.

A new address withdrew approximately $6 million worth of LIT, ENA, and ARB from OKX.