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Thursday Dec 4 2025 05:10
2 min
With the growing anticipation of Kevin Hassett potentially becoming the next Federal Reserve Chair, it becomes crucial to analyze the possible impacts on the cryptocurrency market. Historically, the Fed's actions have been a major driver of market movements, and Hassett's leadership could usher in significant changes.
Hassett has previously expressed concerns about keeping interest rates high, suggesting it could hinder economic growth. He is expected to push for faster rate cuts, potentially below 3% or even closer to 1%, to stimulate the economy and boost employment. This aligns with former President Donald Trump's desire to foster economic growth.
Following the official end of Quantitative Tightening (QT) in December, Hassett may be inclined to revive Quantitative Easing (QE). He may be more tolerant of inflation, viewing the 2% target as a flexible ceiling rather than a strict anchor. The focus would be on boosting economic growth and job creation, reducing reliance on data-dependent "gradual" decisions and shifting towards more proactive interventions.
Hassett has a notable connection to the crypto industry, having held over a million dollars in Coinbase stock and served as an advisory board member. He has also participated in White House task forces on digital asset policies, advocating for preserving space for innovation within regulatory frameworks. Hassett views cryptocurrencies as an important variable influencing the future economic structure and has stated that Bitcoin would "rewrite financial rules."
Hassett's appointment could reduce regulatory uncertainty and promote institutional adoption of cryptocurrencies, as well as encourage the Fed to explore crypto integration. This could enhance Bitcoin's legitimacy and liquidity, potentially driving its price to new highs. Many traders anticipate a bull market following Hassett's appointment, seeing it as the beginning of a new phase of growth, especially in the second half of 2026.
Risk Warning: this article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform.When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. Trading cryptocurrency CFDs and spread bets is restricted for all UK retail clients.
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