- Bitcoin jumps 5% and puts pressure on short sellers after Trump comments on next Fed chair:

The price of Bitcoin rose by 5% after President Trump’s comments regarding the next chairman of the Federal Reserve.
Trump indicated that the next Fed chair is expected to cut interest rates immediately.
The value of Ethereum, XRP, Solana, and other leading cryptocurrencies rose alongside Bitcoin.

Bitcoin (BTC), along with most major cryptocurrencies, saw a 5% increase on Tuesday following President Donald Trump’s remarks on monetary policy in an interview with Politico. The U.S. president indicated that the next Federal Reserve chair is expected to cut interest rates immediately.

Trump will announce the next Fed chair in the coming days, with White House economic adviser Kevin Hassett being the frontrunner on the prediction platforms “Polymarket” and “Kalshi.” In a panel discussion at the Wall Street Journal’s Leadership Institute on Tuesday, Hassett confirmed that “there is ample room to cut interest rates.”

The Federal Open Market Committee (FOMC) is expected to lower interest rates by 25 basis points at its meeting on Wednesday. Market experts see this cut as hawkish, expecting the Fed to adopt a wait-and-see approach in January due to delayed economic data resulting from the government shutdown in recent months.

Trump’s comments trigger short liquidations
Nevertheless, Trump’s latest comments boosted market sentiment ahead of the decision, as the crypto market saw more than $263 million in short liquidations over the past four hours, according to Coinglass data.

Bitcoin’s price surpassed $94,000 and is nearing $95,000 for the first time since November 17. The rally in the leading cryptocurrency has extended to the wider digital asset market, with nearly every token in the top 100 trading in the green.

The value of Ethereum (ETH), XRP, BNB, and Solana (SOL) rose by 8%, 4%, 3%, and 6%, respectively, at the time of publication on Tuesday.