Crypto Braces for a Fed Shake-Up as Trump Hints at His Pick

Donald Trump has signaled that the race to appoint the next chair of the Federal Reserve is entering its decisive phase, telling reporters that while multiple candidates remain under review, he already has a favorite in mind. Interviews with finalists are set to begin this week, with a formal announcement expected in January—setting the stage for one of the most market-sensitive decisions of the coming year.

Prediction markets and political insiders currently favor Kevin Hassett, the director of the National Economic Council, whose odds surged after Trump publicly referred to him as a “potential Fed chair.” While former Fed governor Kevin Warsh and sitting governors Christopher Waller and Michelle Bowman remain in the running, the betting markets are clearly leaning in one direction as the final interviews approach.

For crypto markets, this isn’t just another Washington power struggle. The identity of the next Fed chair could define the trajectory of U.S. interest rates, liquidity conditions, and risk appetite just as Bitcoin and digital assets once again move in lockstep with macro policy. A shift toward easier monetary conditions could reignite speculative momentum across crypto, while a firmer inflation stance could keep pressure on risk assets well into 2025.

There’s also a deeper narrative at play. A Fed chair seen as closely aligned with the White House could revive long-standing concerns about political influence over monetary policy—an idea that has historically strengthened Bitcoin’s appeal as a hedge against fiat control, even as higher rates tend to weigh on short-term crypto demand.

With Trump openly hinting that the decision may already be taking shape behind the scenes, the countdown has begun. For digital asset investors, the coming Fed appointment may prove to be one of the most important macro catalysts of the year.

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