Donald Trump has brought the Federal Reserve back into the spotlight of the crypto world by telling reporters he “already” knows who should replace Jerome Powell. This sparked a sharp shift in prediction markets, favoring Kevin Hassett. Speaking in the Oval Office, Trump said, “I think I already know my choice,” when asked about the next Fed chair. He added that he would “love to get the guy currently in there out right now, but people are holding me back,” clearly targeting Powell without naming him.
Trump also hinted at his shortlist, mentioning, “We have some surprising names and some standard ones that everyone’s discussing. We might go the standard route. It’s nice to be politically correct sometimes.” This was enough to move the markets. On platforms like Polymarket and Kalshi, bets on “Who will Trump nominate as Fed Chair?” quickly centered on Hassett, with his odds rising to the mid-to-high 40 percent range.
Jim Bianco captured the shift, noting, “He wants Bessent but will take Hassett. The rest get to take selfies in the Oval Office.” He later observed that Hassett was pulling ahead and nearing a 50% probability, outpacing rivals. Kalshi highlighted the move on social media: “BREAKING: Trump thinks he ‘already knows’ who will be next Fed Chair. 47% chance it’s Kevin Hassett.”
The trader Byzantine General pointed out that Powell’s term ends in May next year and sketched a scenario for the second quarter with a Fed chair who listens to Trump and potential benefits for the public, while cautioning that with Trump, anything is possible.
For crypto traders focused on macroeconomic trends, the key takeaway is the policy signal in these probabilities. Hassett is seen as more dovish than Powell and more aligned with Trump’s preference for looser financial conditions. Trader CRG described it as the arrival of a “new hand-picked super dove as Fed chair coming soon.” Analyst Alex Krüger argued that the Fed chair selection is the next major driver for risk assets once current Fed noise subsides, naming Hassett, Rieder, and Zervos as the most bullish options.
Crypto traders care because cryptocurrencies act as high-risk, liquidity-sensitive assets. A Fed chair perceived as more willing to cut rates quickly or support easier financial conditions is seen as a long-term positive for the liquidity that fuels investments in Bitcoin and other cryptos. Additionally, Trump’s public pressure on Powell and his political approach to replacing the Fed chair reinforce the idea of Bitcoin as a hedge against political and institutional risks.
For now, nothing has changed at the Fed—Powell remains in charge, and only prediction market odds have shifted. But as those odds lean toward Kevin Hassett, crypto traders are already viewing the potential change as a significant, though still latent, development.A strong bullish trend is gaining momentum in the background. Currently, the total crypto market cap stands at $3.11 trillion. The featured image was generated with DALL.E, and the chart is sourced from TradingView.com.
Frequently Asked Questions
Of course Here is a list of helpful and clear FAQs about the topic Crypto Traders Spot a Bullish Trend Hassetts Chances for Fed Chair Rise
BeginnerLevel Questions
1 What does a bullish trend mean in crypto
A bullish trend or a bull market is a period when cryptocurrency prices are generally rising or expected to rise Its a time of optimism and buying activity in the market
2 Who is Hassett and why would he matter to crypto
Kevin Hassett is a wellknown economist His potential appointment as Federal Reserve Chair matters because the Feds policies heavily influence the entire economy including investor confidence in risky assets like cryptocurrency
3 How can a persons chance of becoming Fed Chair affect crypto prices
If traders believe a potential Fed Chair will be favorable to economic growth they become more confident This confidence often leads them to invest in riskier assets like crypto which can drive prices up and create a bullish trend
4 What is the Federal Reserve
The Federal Reserve is the central bank of the United States It controls the countrys monetary policy including interest rates and the money supply which affects everything from loans and inflation to investment markets
Intermediate Practical Questions
5 What specific policies might make crypto traders bullish about Hassett
Traders might be optimistic if Hassett has a history of supporting policies that lead to lower interest rates or increased money supply These conditions make it cheaper to borrow money and can push investors toward higheryielding assets like crypto
6 How do traders spot this kind of bullish trend
They monitor financial news analyze an economists past statements and policy preferences and watch for shifts in market sentiment through tools like price charts trading volume and social media buzz
7 Is this a guaranteed way to make money
No it is not Political appointments are uncertain and market reactions can be unpredictable This is a speculative bet based on an anticipated event not a sure thing
8 Whats a practical first step if I think this trend is happening
First do your own research on the news and Hassetts economic views Then you might consider a small strategic investment rather than going all in and