Bitcoin is experiencing a downturn alongside gold and silver as the new Federal Reserve chair, Kevin Warsh, adopts a hawkish stance. Markets are now anticipating two quarter-point rate hikes by March 2027, potentially raising the Fed's benchmark rate to between 4.00% and 4.25%. This has led to a 0.8% increase in the U.S. dollar this week, negatively impacting hard assets like gold, silver, and bitcoin, which do not offer yields. The stronger dollar and higher real yields make these assets more expensive for international buyers and increase the cost of holding them. While bitcoin previously diverged from gold and silver trends, maintaining stability near $100,000 through 2025, it is now closely following the metals' downward trajectory, raising questions about its role as a hedge against currency dilution.