$1000LUNC
Cryptocurrency market faces a major shock warning! Trump appoints favorite for Federal Reserve Chairman, will aggressive rate cuts trigger a Bitcoin explosion?
This week, all eyes in the cryptocurrency market are locked on the White House — Trump officially initiates the final round of interviews for the Federal Reserve Chairman position, and Hassett is leading with a significant advantage. This 'super dove,' closely tied to the president, is pushing the cryptocurrency market toward a dual windfall of 'rate cut celebration' and 'policy explosion.'
Who is Hassett? He is a core economic advisor to Trump, known as the 'rate cut vanguard,' highly in sync with Trump's 'growth first' approach, and is even considered by the market as the candidate most detrimental to the dollar. The scenario that Wall Street fears the most is approaching: if he replaces Powell in May next year, aggressive rate cuts could be directly implemented, and low interest rates have always been the 'lifeblood' for risk assets like cryptocurrencies. After all, when dovish statements from the Fed emerged previously, Bitcoin could surge by 3.5% in a single day, igniting a wave of excitement across the network.
But is the other side of the coin deadly volatility? Previously, the Fed's hawkish rate cut merely hinted at two fewer cuts next year, and Bitcoin plummeted over 5%, with 250,000 people facing liquidations totaling $700 million. The close relationship between Hassett and the White House is triggering a trust crisis in the Fed's independence; if the dollar's credibility is damaged by political interference in finance, global capital turbulence could lead to a repeat of December's collective plunge in the cryptocurrency market, when 170,000 people faced liquidations of $539 million in just 24 hours, and Bitcoin approached the $80,000 mark.
More critically, the variables are not resolved: on Wednesday, Trump will interview hawkish candidate Waller (former Fed governor, advocating strict inflation control), and the White House has made it clear that Hassett is not a done deal and may even have his term shortened. It's worth noting that the current leverage ratio in the cryptocurrency market is nearing peak bull market levels; even a slight shift in policy direction could trigger a chain reaction of liquidations. After all, in October, a single threat of tariffs from Trump led to $2 billion in leveraged liquidations, with Bitcoin setting the record for the largest single-day drop in history.
On one side is the fantasy of a surge driven by rate cut expectations, and on the other is the bomb risk brought about by policy uncertainty. Is the cryptocurrency market really going to dance on the edge of a knife this time? Do you think Hassett's appointment is the 'honey' that will push Bitcoin to $150,000, or the 'poison' that triggers a new round of collapse? Can the $80,000 mark withstand the impact of policy games? Come to the comments section and share your thoughts!