U.S. President Donald Trump’s recent comments regarding the Fed chairmanship have slowed Bitcoin’s upward momentum, with the market once again pricing in expectations for a rate cut in 2026.
As Bitcoin prices neared the $100,000 level in early 2026, President Trump’s comments about selecting a Fed chairman were seen by investors as a potential “price tipping point.”
According to Reuters, speaking at the White House, President Trump said he preferred economic advisor Kevin Hassett to remain in his current position, despite expectations that he would replace current Federal Reserve Chairman Jerome Powell. President Trump said such changes would “raise serious concerns.” The remarks quickly dampened market speculation that Hassett would be named Fed chairman.
After the announcement, Mr. Hassett’s odds of winning in the polymarket prediction market dropped significantly, but the odds for Mr. Hassett’s closest rival, former Fed director Kevin Warsh, increased to about 60%.
Market analysts note that Hassett is seen as a relatively “dovish” candidate and that if he becomes Fed chair, expectations for a rate cut in 2026 could increase, which could provide support for Bitcoin and other risk assets. In contrast, Warsh’s more “hawkish” stance could raise expectations that the high interest rate environment could persist for an extended period of time, creating short-term pressure on crypto assets.
Warsh’s past investments in crypto companies and his role as an advisor at institutional crypto bank Anchorage are notable, but analysts say his monetary policy approach is more tightened than Hassett’s. Aurélie Bartel, principal research analyst at Nansen, said Hassett “initially took a more supportive stance toward the crypto market.”
*This is not investment advice.
