Trump Sends Fed Personnel Signals, Bitcoin Rally Disrupted as Market Reassesses 2026 Rate Cut Expectations
BlockBeats News, January 17 — As the bitcoin price approaches $100,000 in early 2026, the latest remarks by U.S. President Trump regarding the candidate for Federal Reserve Chair are being seen by the market as a potential "price turning point."
According to Reuters, Trump recently stated publicly at the White House that, despite widespread expectations that White House economic advisor Kevin Hassett would succeed current Chair Powell, he is "more inclined to keep Hassett in his current position," saying that a transfer would be "a serious concern." These comments quickly dampened market bets on Hassett becoming the next Federal Reserve Chair.
Affected by this, the probability of Hassett's election on the prediction market Polymarket dropped sharply, while his main competitor, former Federal Reserve Governor Kevin Warsh, saw his chances rise to nearly 60%.
Market analysis points out that Hassett is seen as a more dovish candidate; if he were to become Federal Reserve Chair, it could be more favorable for rate cut expectations in 2026, thereby supporting bitcoin and risk asset performance. In contrast, Warsh is relatively more hawkish, which means a high interest rate environment may persist longer, putting short-term pressure on crypto assets.
Although Warsh has invested in crypto companies and served as an advisor to institutional-grade crypto bank Anchorage, analysts believe his monetary policy stance is less accommodative than Hassett's. Nansen Chief Research Analyst Aurelie Barthere pointed out that Hassett "originally showed greater support for the crypto market."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Ethereum’s $2,540 Retest Becomes Key Test for the Rally
Canton Network breaks 2 month range! – CC’s run to $0.15 depends on THIS zone
Analysis: Wall Street Is Not Yet Ready to Short AI in Large Numbers
Overseas capital is aggressively buying US stocks! Net inflows reached $942 billions over the past 12 months, marking a record since 1985.
According to data from the US Department of the Treasury, in the 12 months ending July this year, overseas investors made net purchases of US stocks totaling $942 billion, marking the highest rolling 12-month total since records began in 1985. The net purchases in the second quarter alone reached $426 billion, setting a new single-quarter record. Meanwhile, overseas demand for US Treasuries has noticeably cooled, with purchase volumes falling significantly. As a result, the US is facing higher costs in government debt financing.
Crypto prices
More
