Recent statements by former U.S. President Donald Trump regarding the Federal Reserve chairmanship have contributed to a slowdown in Bitcoin's upward momentum and triggered a broader market reassessment of monetary policy expectations for 2026. As Bitcoin approached the $100,000 level in early 2026, Trump's comments were viewed by investors as a potential turning point.
Speaking at the White House, Trump indicated a preference for White House economic adviser Kevin Hassett to remain in his current role, despite market speculation he might replace current Fed Chair Jerome Powell. Trump stated such a change would "create serious concern," quickly dampening expectations for a Hassett appointment. Following this, the probability of Hassett winning in the Polymarket prediction market dropped significantly, while the odds for his more hawkish rival, former Fed Board member Kevin Warsh, rose to approximately 60%.
Market analysts note that Hassett is perceived as a relatively "dovish" candidate whose potential leadership could strengthen expectations for a 2026 interest rate cut, a scenario seen as supportive for Bitcoin and other risk assets. In contrast, Warsh's more "hawkish" stance increases expectations that high interest rates may persist longer, creating short-term pressure on crypto assets. Aurelie Barthere, Nansen's chief research analyst, noted that Hassett "initially took a more supportive stance towards the crypto market."
Concurrently, global regulatory crackdowns on the cryptocurrency sector are intensifying. Financial watchdogs from the U.S., U.K., Australia, and other regions are increasing oversight of crypto promotions, trading platforms, and social media-based financial advice (finfluencers), with recent cases resulting in fines or bans. This regulatory tightening highlights growing concerns over retail investor protection.
The dual developments of political pressure on monetary policy and heightened regulatory scrutiny reveal a tension between economic stimulus and market control, setting the stage for a period of both opportunity and risk for digital asset markets.
