Recent statements by US President Donald Trump regarding the Fed chairmanship have weakened Bitcoin’s upward momentum and led to a re-pricing of expectations for a 2026 interest rate cut in the market.
As the Bitcoin price approached the $100,000 level at the beginning of 2026, Trump’s statements regarding the FED Chairman selection were considered by investors as a potential “price turning point.”
According to Reuters, Trump, speaking at the White House, said he preferred that White House economic adviser Kevin Hassett remain in his current role, despite expectations that he would replace current Federal Reserve Chairman Jerome Powell. Trump stated that such a change would “create serious concern.” This statement quickly dampened market speculation that Hassett would be appointed Fed Chairman.
Following the announcements, the probability of Hassett winning in the Polymarket prediction market dropped significantly, while the probability of his strongest rival, former Fed Board member Kevin Warsh, rose to approximately 60%.
Market analysts note that Hassett is seen as a relatively “dovish” candidate and, if he becomes Fed Chairman, could strengthen expectations of an interest rate cut in 2026, which would be supportive for Bitcoin and other risky assets. In contrast, Warsh’s more “hawkish” stance increases expectations that the high interest rate environment may continue for longer, creating short-term pressure on crypto assets.
While Warsh’s past investments in cryptocurrency companies and his advisory role at the institutional crypto bank Anchorage are noteworthy, analysts point to his tighter monetary policy approach compared to Hassett. Aurelie Barthere, Nansen’s chief research analyst, notes that Hassett “initially took a more supportive stance towards the crypto market.”
*This is not investment advice.
