4 Ways Trump’s New Fed Chair Could Supercharge Bitcoin’s Price

The term of the current Federal Reserve Chair, Jerome Powell, ends in May 2026. But the very pro-Bitcoin President Trump wants to get a head start on finding his successor. Meanwhile, the new chair could hit the ground running when his term begins next May. U.S. Treasury Gives Crypto Nod On New Fed Chair? Trump is likely to pick a new Fed chair by Christmas. U.S. Treasury Secretary Scott Bessent said on Nov. 25th: “I think there’s a very good chance that the president will make an announcement before Christmas.” There was a big teaser for Bitcoin price markets in Bessent’s remarks for a CNBC interview: “We’ve gotten to this point where monetary policy has gotten very complicated, and it’s more than just cutting rates.” Bitcoin’s price rose following news that Trump was getting close to picking his new Fed chair. A school of Bitcoin whale buyers led the surge back then. But now, after the dust has settled and we are a few weeks after Bessent’s November comments, here are four reasons why Bitcoin bulls may come out to play following a new Fed chair nomination. Trump Is Pro Low Interest Rates President Trump is famously very dovish. He is extremely in favor of a low-interest-rate policy from the Fed to drive growth. Some economists disagree and believe low interest rates lead to misdirected and wasted capital. But Trump believes the economy does not have enough dollar liquidity to service the enormous scale of businesses and consumers, and its rapid growth in the Internet era. Markets in both stocks and crypto have been teetering in Q4 over whether the Fed will cut rates again in December – something that currently seems almost a certainty. In fact, Trump has been unusually vocal for the office of the president, publicly berating and browbeating Powell and Janet Yellen for not pushing rates as low as he thinks they should be set. He even recently threatened to fire Bessent if the Treasury Department Secretary didn’t persuade Powell and the FOMC to cut rates again in December. So a Trump-nominated Fed chair would certainly reflect his view on U.S. lending rates. That’s good for Bitcoin’s price because of its supply/demand economics. The multi-year view of the U.S. target interest rate and the cryptocurrency paints the picture very clear. When rates go up, Bitcoin’s price crashes. When they go down, BTC goes up. Trump Is Also Pro Bitcoin Moreover, President Trump is not only pro-low interest rates. He’s also very pro-Bitcoin. In March, Trump said in a post on Truth Social, “A U.S. Crypto Reserve will elevate this critical industry… I will make sure the U.S. is the Crypto Capital of the World.” In a more recent, Nov. 2 “60 Minutes” interview on CBS News, Trump said: “I only care about one thing — will crypto be number one in America? Because in crypto it’s the kind of industry where basically you’re going to have number one and you’re not gonna have a number two. Furthermore, the president added: “I wanna make crypto great for America. That’s the only thing [ … ] Because right now we’re number one by a long shot. I wanna keep it that way.” The Fed plays a central role in providing guidance and supervision of its member banks like JP Morgan and Bank of America Merrill Lynch, as they offer Bitcoin products to investors. The president has strongly emphasized to markets that he prioritizes Bitcoin and cryptocurrencies. So a Trump pick heading the Fed will likely deliver a real impact on the financial sector that boosts Bitcoin’s value. Likely Fed Chair Pick Is Pro Crypto Kevin Hassett, the Director of the United States National Economic Council, leads Trump’s short list. He has strong ties to crypto through his work at the White House Economic Council. Some outlets even called Hassett a “crypto super bull,” but it’s important to see if this will be followed through if he gets elected as the new chairman. Wall St. Will Go Risk On Spot ETFs for Bitcoin have an enormous impact on Bitcoin’s price. Like crypto markets, Wall Street’s stock exchanges flip to bullish when the Fed lowers interest rates. The flood of new dollar supplies through institutions raises the entire sea level for asset prices. Since the spot Bitcoin ETFs launched in Jan. 2024, there has been a persistent and very tight positive correlation between ETF flows and Bitcoin’s price movements up or down the chart. And Wall Street loves these spot Bitcoin funds. The post 4 Ways Trump’s New Fed Chair Could Supercharge Bitcoin’s Price appeared first on CryptoPotato.