Trump Signals Fed Personnel Change, Bitcoin Rally Disrupted, Market Reassesses 2026 Rate Cut Expectation

On January 17, 2026—with Bitcoin prices nearing $100,000 early that year—U.S. President Trump’s latest remarks on the Federal Reserve Chair nominee were viewed by markets as a potential "price inflection point." Per Reuters, Trump recently told reporters at the White House that while White House economic advisor Kevin Hassett was widely expected to replace current Fed Chair Jerome Powell, he “leans more toward keeping Hassett in his current role” and views a potential reassignment as a “serious concern.” The comment quickly cooled market expectations that Hassett would take the Fed’s top job. As a result, Hassett’s projected win probability on prediction platform Polymarket plummeted, while that of his top rival—former Fed Governor Kevin Warsh—jumped to nearly 60%. Market analysts note that Hassett is viewed as the more dovish candidate: his Fed Chairmanship would likely boost expectations of 2026 rate cuts, supporting Bitcoin and risk assets. Warsh, by contrast, is more hawkish—suggesting high interest rates could linger longer, pressuring crypto assets in the short term. While Warsh has previously invested in crypto firms and advised institutional crypto bank Anchorage, analysts say his monetary policy stance is less accommodative than Hassett’s. Nansen Chief Research Analyst Aurelie Barthere noted Hassett “was initially more supportive of the crypto market.”