Investor expectations for a Federal Reserve rate cut in March have risen, with CME Group's FedWatch tool indicating a 23% probability, up from 18.4% last week. This shift follows the nomination of Kevin Warsh as Fed chair, raising questions about future monetary policy direction, particularly regarding balance-sheet management. Warsh's nomination has sparked debate over potential policy shifts, with concerns about a tighter liquidity environment if the Fed reduces its balance sheet. This has implications for both traditional and crypto markets, where liquidity conditions significantly impact asset prices. Analysts are closely monitoring Fed communications and market reactions as the March FOMC meeting approaches, with the potential for policy decisions to influence risk sentiment and funding conditions across asset classes.