Latest news indicates a shift in Trump’s policy stance—White House economic advisor Kevin Hassett is favored to remain, which means former Federal Reserve Governor Kevin Warsh is now in the running for Fed Chair. The market reacted immediately and strongly.
Immediate market changes:
The US dollar index strengthened, gold prices dropped by about $70; US Treasury yields faced upward pressure; market expectations for rate cuts have consequently diminished.
Why do traders care so much? Warsh is historically known for his "hawkish" stance, implying the Fed might shift toward a more tightening monetary policy. What impact could this have on crypto assets?
In the short term, tightening policies usually suppress the performance of high-risk assets like Bitcoin. But from a longer-term perspective, rising policy uncertainty in traditional financial systems often prompts funds to seek alternative assets for risk hedging. As a relatively independent ecosystem, the crypto market may see a new wave of allocation demand.
The key is to watch the official nomination announcement at the end of the month—this re-pricing of the global liquidity landscape ultimately hinges on this personnel confirmation.
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WhaleWatcher
· 10h ago
When Wosh takes the stage, it's time to suffer from hawkishness. Let's follow the old pattern of falling first and rising later.
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SmartContractDiver
· 10h ago
Wosh took the stage, and a bloodshed rate cut seems unlikely. In the short term, BTC is probably going to face pressure.
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DecentralizedElder
· 10h ago
It's another Fed personnel drama... The hawks take power, and in the short term, there will definitely be a bloodbath, but in the long run, isn't this just traditional finance shooting itself in the foot? Capital will still flow into crypto.
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TokenomicsTinfoilHat
· 10h ago
Hawkish Fed Chair? This means short-term we need to hold onto stablecoins tightly, but in the long run, it's actually an opportunity... Just waiting to see what happens at the end of the month.
#美国民主党BlueVault $ETH $BTC Market Fluctuations! Federal Reserve Personnel Changes Trigger Chain Reactions
Latest news indicates a shift in Trump’s policy stance—White House economic advisor Kevin Hassett is favored to remain, which means former Federal Reserve Governor Kevin Warsh is now in the running for Fed Chair. The market reacted immediately and strongly.
Immediate market changes:
The US dollar index strengthened, gold prices dropped by about $70; US Treasury yields faced upward pressure; market expectations for rate cuts have consequently diminished.
Why do traders care so much? Warsh is historically known for his "hawkish" stance, implying the Fed might shift toward a more tightening monetary policy. What impact could this have on crypto assets?
In the short term, tightening policies usually suppress the performance of high-risk assets like Bitcoin. But from a longer-term perspective, rising policy uncertainty in traditional financial systems often prompts funds to seek alternative assets for risk hedging. As a relatively independent ecosystem, the crypto market may see a new wave of allocation demand.
The key is to watch the official nomination announcement at the end of the month—this re-pricing of the global liquidity landscape ultimately hinges on this personnel confirmation.