Trump confirmed that he has chosen a candidate for the new Federal Reserve Chairman, causing the cryptocurrency market to focus on the interest rate scenario and volatility risks of Bitcoin and Ethereum in the coming period.
Trump's announcement about the next Fed Chairman came before an official name was announced, but it was enough to raise expectations and concerns across both traditional financial markets and cryptocurrencies, which are highly sensitive to the direction of monetary policy.
- Trump said he has chosen the person he wants to appoint as the new Fed Chairman, and an official announcement will be made soon.
- This decision could impact interest rate expectations, inflation and risk appetite in the cryptocurrency market.
- CoinMarketCap data shows Bitcoin still dominates in terms of Capital , despite price corrections and increased volatility.
Trump's pick for new Fed chairman could have a big impact on the cryptocurrency market
Trump’s announcement that he has chosen a Fed Chair candidate creates a macro policy event that crypto investors should closely follow, as the interest rate and liquidation direction from the new Fed leader could change the attractiveness of Bitcoin, Ethereum, and risk assets.
In his latest remarks, Trump said he knows “who the next Fed Chairman will be” and will announce the identity soon. The main stakeholders mentioned include Trump, potential candidates and current Fed Chairman Jerome Powell, who is responsible for managing current monetary policy.
I know who I want as Chairman of the Federal Reserve and will announce it soon.
– Donald Trump, former US President, speaking on social network X in 2025
The market is paying attention because each candidate may have a different management style, from “hawk” who prioritizes curbing inflation to “dove” who prioritizes growth. This directly affects the path of interest rates, the level of liquidation support and thereby the valuation of digital assets.
Concerns over interest rates and monetary policy direction
Trump's announcement, made without a formal nomination, has fueled speculation about how hawkish or dovish monetary policy will be during the new Fed chairman's term. Interest rates are a central variable for the cost of Capital, the valuation of stocks, bonds and cryptocurrencies.
Investors are looking for signs of the balance between controlling inflation and supporting growth. A Fed chairman favoring low interest rates and quantitative easing is generally XEM as more positive for Bitcoin and Ethereum, while a prolonged tightening stance could keep pressure on risk assets.
Why the Fed Chairman's Decision is Especially Important for Bitcoin and Ethereum
The decision on the Fed chairman can shape the direction of interest rates and liquidation across the system, two key factors for risk assets like Bitcoin and Ethereum. Changing expectations about monetary policy often lead to sharp fluctuations in digital assets as investors re-adjust their portfolios.
Raoul Pal, CEO of Real Vision, emphasized that the Fed leadership choice has “reverberations far beyond Wall Street,” as hawkish or dovish signals are quickly reflected in digital assets. For Bitcoin and Ethereum, these changes are often reflected in price movements, volume , and Capital into and out of Derivative.
The Fed leadership pick has ripple effects far beyond Wall Street – the cryptocurrency market will be watching closely to gauge whether it signals hawkishness or dovishness.
– Raoul Pal, CEO Real Vision Group, Chia on X 2025
From an exchange perspective, Binance founder CZ has repeatedly emphasized the Vai of macroeconomic stability and monetary policy in shaping crypto investor sentiment. When markets anticipate changes at the Fed level, leverage trading strategies and risk management are often adjusted early.
Interest rates, inflation and risk appetite in the crypto market
As the Fed keeps interest rates high for a long time, the rising cost of Capital makes investors more cautious about volatile assets like cryptocurrencies. Conversely, expectations of lower interest rates and easier liquidation could push Capital back into digital assets, especially Bitcoin and Ethereum.
Inflation is also an important variable. If the new Fed Chairman is expected to handle inflation flexibly but not too hawkishly, the market may see Bitcoin as a long-term hedge while accepting greater volatility in the short term. Conversely, a strong anti-inflation stance could lead investors to reduce risk.
How BTC and ETH Could Move Before Signals From the Fed
History shows that Fed meetings, Chairman speeches, and senior personnel changes are often accompanied by large short-term swings in BTC and ETH . The highest sensitivity is usually seen around the time of announcements, when the market reprices the probability of interest rate scenarios.
According to the Coincu research team, liquidation and financial regulation signals from the Fed often lead to changes in volume and institutional investor participation in the cryptocurrency market. If the Fed Chairman candidate is expected to maintain a cheap money environment, risk appetite for BTC and ETH may increase again, although strong volatility is not excluded.
Latest Bitcoin Data: Market Share, Capital , and Price Volatility
According to CoinMarketCap data, Bitcoin currently accounts for about 58.72% of the market Capital , equivalent to a Capital of about $1.74 trillion. BTC price is around $87,437.54, down 3.96% in the last 24 hours but still recording a slight increase for the week, reflecting a correction phase within the larger trend.
This snapshot of Bitcoin's daily chart on CoinMarketCap at 08:15 on December 1, 2025 ( GMT+7) shows that the price is fluctuating after the previous rally. Despite the short-term correction, Bitcoin's position as the top Capital shows that the asset remains the core risk sentiment gauge of the cryptocurrency market.
The Coincu research team believes that the impact of the new Fed Chairman on Bitcoin will be shown first through liquidation data, volume and hidden volatility in Derivative products. Institutional investors tend to react strongly to changes in interest rate expectations, thereby creating increased trading on BTC.
Lessons from Trump's 2017 appointment of Jerome Powell
Looking back at 2017, Trump's appointment of Jerome Powell contributed to the bullish sentiment in the stock and cryptocurrency markets, as he was XEM as relatively market-friendly. In that context, Bitcoin recorded a period of strong growth in price and public attention.
While the macro landscape has changed, history shows that Fed personnel decisions can Vai as a catalyst for market sentiment. Cryptocurrency investors are looking to XEM if the new nominee brings similar expectations or signals a different policy stance.
Fed Policy Scenarios Crypto Markets Are Watching
The cryptocurrency market is positioning itself for three main scenarios regarding the new Fed Chairman: continued aggressive tightening, gradual easing, or a “wait and XEM” stance. Each scenario has different implications for the volatility of Bitcoin, Ethereum, and Capital flows into risk assets.
In a scenario where the new Fed Chairman takes a hawkish stance, persistently high interest rates could keep pressure on digital asset valuations. In a dovish scenario, expectations of earlier rate cuts could support risk assets. In a data-first scenario, the crypto market’s reaction would hinge on each set of economic data released.
- Hawkish scenario: interest rates remain high, priority given to curbing inflation, risk of falling digital asset valuations.
- Dove scenario: signals of lower interest rates and more easing, supporting risk appetite with BTC, ETH.
- Neutral scenario: Fed is data dependent, crypto markets fluctuate around announcements.
Frequently Asked Questions
Why Trump's Fed Chair Pick Affects Bitcoin?
The new Fed chair will shape the path of interest rates and liquidation, two factors that determine the cost of Capital and risk appetite. When monetary policy expectations change, investors often rebalance their portfolios, causing Bitcoin and other digital assets to be more volatile than usual.
How Volatile Could the New Fed Chair Make BTC and ETH ?
The level of volatility depends on whether the candidate is XEM a hawk or a dove and on the economic data at the time of the announcement. History shows that BTC and ETH often widen their ranges around Fed events, accompanied by increased volume and leveraged trading activity.
When is the Bitcoin data in the article updated?
The figures in this article are based on CoinMarketCap data with a snapshot taken at 08:15 on December 1, 2025 ( GMT+7). At that time, Bitcoin was priced at about $87,437.54, with a market Capital of about $1.74 trillion and accounting for about 58.72% of the total cryptocurrency market Capital .
