Trump finalizes Federal Reserve Chair candidate; can interest rate cuts save the crypto market?

【BlockBeats】Trump has decided on the next Federal Reserve Chair. On January 9th, he confirmed in an interview with The New York Times that he already has a shortlist in mind, but has not yet communicated with any candidates. When asked whether his chief economic advisor, Hassett, has a chance, Trump played it safe, “I don’t want to say,” but quickly added that this advisor is “definitely one of the people I like.”

That said, the market’s intuition has already taken a step ahead. According to data from the prediction platform Kalshi, currently, Wosh has a 41% chance of being elected, followed by Hassett at 39%, while Waller’s support is relatively low at only 12%.

This choice is no small matter. What kind of situation will the next Federal Reserve Chair face? A central bank pressured by the president to significantly cut interest rates—an unprecedented level of pressure. The Fed is at a crossroads, and how it balances inflation, employment, and asset prices will directly influence global macro liquidity flows. This is crucial for investors holding crypto assets—everyone knows that the Fed’s rate-cut cycle often coincides with a rebound in risk assets.

In the short term, how will the market react? The key depends on whether the new Chair can withstand pressure and implement independent policies or if political pressure accelerates rate cuts. If rate cuts happen quickly, liquidity will flow into alternative assets including Bitcoin; otherwise, pressure may persist. This is a critical window, and all capital is waiting for this signal.