Donald Trump is now in the final stages of selecting the next Federal Reserve (Fed) Chair; his top economic adviser Kevin Hassett is currently the frontrunner.
Markets widely expect that rate cuts will be a key criterion for Trumpās pick.
As of today, financial markets are pricing in a high likelihood of a near-term rate cut from the Fed.
Because lower interest rates usually weaken the dollar and boost liquidity ā conditions often favorable for risk assets ā some analysts believe this could trigger a surge in demand for high-beta assets like Bitcoin (BTC), and by extension, certain altcoins.
---
ā ļø Cautions & Reality Checks
The nomination of the new Fed Chair is not yet final ā even though Trump says he has āmade his choice,ā the official pick is still pending.
Some parts of Wall Street remain skeptical about how quickly aggressive rate cuts will follow, if at all.
A lot depends on how the Fed, under new leadership, balances rate cuts against inflation and macro stability.
---
š” Possible Crypto-Market Scenario (If New Fed Chair + Rate Cuts Go Through)
Weakening USD + increased liquidity ā boost for BTC and risk-on assets.
Upside potential for crypto alts (especially high-beta) as money flows out of rates/treasuries and into risk assets.
Short-term volatility likely ā sharp moves possible if markets āprice inā the chang
e before the Fed actually acts.$BTC
