The new chair of the Federal Reserve brings the possibility of a raging bull market!
According to data from the prediction market Polymarket, the probability of Kevin Hassett being elected as the next chair of the Federal Reserve has risen to 86%, which almost indicates that he will take over the Federal Reserve and become Trump's preferred candidate. The Federal Reserve's policies have always influenced the direction of the cryptocurrency market. If Hassett really takes office, it is expected to bring a series of key changes.
Hassett has publicly stated that the current pause in interest rate cuts is "poor timing" because the government shutdown has hindered economic growth. He even predicts that GDP will decline by 1.5% in the fourth quarter. According to his views, the inflation data is actually milder than expected, so he is likely to advocate for a faster pace of interest rate cuts, with future rates possibly dropping below 3%, or even approaching 1%, to fully stimulate the economy and employment — which is exactly what Trump hopes to see.
In addition, Hassett's attitude towards inflation may be more flexible, no longer steadfastly adhering to the 2% target, but rather focusing more on growth and employment. This means the Federal Reserve may shift back to quantitative easing, supporting the economy by releasing liquidity. He has previously mentioned that the U.S. is expected to achieve 4% GDP growth, indirectly reflecting his "economy first" stance.
For Bitcoin, Hassett's appointment might be a positive development. He has strong ties to the cryptocurrency industry: he once held Coinbase stocks worth millions of dollars and has served as an advisor to the platform. This background may reduce policy uncertainty and encourage more institutions to embrace crypto assets, thereby enhancing the legitimacy and liquidity of Bitcoin. Many traders believe that once Hassett officially takes charge, the market may welcome a new bull market, especially in the second half of next year, which is worth paying close attention to.
In my view, if Hassett takes office, not only will he reshape the pace of monetary policy, but he may also open up a more relaxed environment for cryptocurrencies. Investors should pay attention to the trend evolution in the middle of next year, as it may become a key point for market turning!
