Bitcoin’s Monetary Policy Crossroads: How Trump’s Fed Chair Decision Could Reshape Crypto’s Trajectory

As former President Donald Trump initiates interviews to replace Jerome Powell as Federal Reserve chair, cryptocurrency markets stand at a pivotal juncture. With Kevin Hassett—Trump's former National Economic Council director and current frontrunner with 73% prediction market odds—advocating for accommodative, low-interest-rate policies, the stage is set for potential monetary shifts that could profoundly impact Bitcoin and digital assets. This development arrives amid significant market uncertainty, positioning cryptocurrencies as both potential beneficiaries and barometers of evolving U.S. monetary policy. A Trump-aligned Fed chair favoring dovish approaches could accelerate institutional adoption, enhance Bitcoin's appeal as an inflation hedge, and reshape the regulatory landscape. However, the transition also introduces volatility risks as markets digest new leadership priorities. For Bitcoin proponents, this moment represents more than political theater—it's a fundamental test of cryptocurrency's resilience and relevance within traditional financial systems. The outcome will likely influence capital flows, regulatory clarity, and long-term valuation models for digital assets globally.

Trump Begins Fed Chair Interviews Amid Market Uncertainty

Donald TRUMP has commenced interviews with finalists to replace Jerome Powell as Federal Reserve chair. The decision carries significant implications for monetary policy and financial markets, including cryptocurrencies. Kevin Hassett, director of the National Economic Council and a Trump ally, emerges as the frontrunner with a 73% prediction market probability. His stance aligns with Trump’s preference for accommodative policies—low rates to stimulate growth.

Tensions between Trump and Powell suggest the next Fed chair may either comply with presidential demands or provoke institutional conflict. This politicization risk coincides with Bitcoin’s fragile position as a barometer for macroeconomic uncertainty. Market volatility is expected around the appointment, particularly for assets sensitive to interest rate trajectories.

Bitcoin Consolidates Near $93K as Fed Decision Looms

Bitcoin's price action stalls below the $93,000 resistance level, with traders awaiting the Federal Reserve's rate decision for directional clarity. The cryptocurrency has rebounded from a December dip to $84,000 but faces stiff resistance NEAR $93,000–$94,000—a zone that has repeatedly capped gains since April.

Market participants are weighing dip-buying opportunities against macro risks, as historical data suggests BTC often reacts sharply to Fed policy shifts. Analysts note declining volume near current levels, signaling hesitation among traders. A breakout above $94,000 could target $100,000, while failure may trigger a pullback toward $90,000.

The Fed's impending announcement on liquidity conditions remains the key catalyst. Matrixport analysts suggest range-bound trading may persist until the central bank's guidance provides fresh impetus for risk assets.

Twenty One Capital Goes Public — and Bitcoin Jumps

Twenty One Capital (XXI) has made its public market debut, sparking renewed enthusiasm in the cryptocurrency sector. The launch coincided with a notable surge in Bitcoin (BTC) prices, underscoring growing institutional interest in digital assets.

The company distinguishes itself with a disciplined, accumulation-driven approach to bitcoin holdings, eschewing high leverage and speculative trading. Backed by Tether and Bitfinex, XXI benefits from both credibility and financial support, further fueling market optimism.

Traders quickly drew connections between XXI's debut and BTC's price movement, amplifying scrutiny of the firm's long-term strategy. The moment marks a potential inflection point for corporate Bitcoin adoption.

Bitcoin Rises as Fed Cuts Rates, $100K Target in Sight

Bitcoin (BTC) gained nearly 1% following the Federal Reserve's third rate cut this year, reigniting bullish sentiment. The MOVE came despite internal dissent among Fed governors and a cautious outlook for 2026, with only one additional cut projected.

Jerome Powell's assurance against rate hikes and current policy stance may stabilize markets after recent volatility. Trading volumes remain modest at $63 billion, but analysts see potential for a rally toward $100,000 if momentum accelerates.

Silk Road Bitcoin Wallets Awaken With $322M Transfer Defying Crash Narrative

Two dormant Bitcoin wallets linked to Silk Road-era activity moved 3,421 BTC ($322.5 million) in May, followed by smaller consolidations in December. Chain analysis reveals these flows were routed through SegWit addresses—a pattern suggesting custody management rather than imminent selling pressure.

The May transfer included a 2,343 BTC outlay redistributed across 31 outputs, while December's movements involved just over $3 million from 300+ labeled wallets. These awakenings coincide with heightened sensitivity to old-coin movements, particularly after U.S. government transfers of seized Silk Road BTC to Coinbase Prime earlier this year.

Market observers note the absence of direct exchange deposits this time, contrasting with August and December's government-driven sell-side pressures. The wallets' activity underscores how legacy holdings continue to influence Bitcoin's supply dynamics without always triggering expected price impacts.

Strategy Inc. Challenges MSCI's Proposed Exclusion of Digital Asset Treasuries from Key Indexes

Strategy Inc., the world's largest Bitcoin treasury firm, has publicly opposed MSCI's consultation plan to exclude Digital Asset Treasury Companies (DATs) from its Global Investable Market Indexes if digital assets exceed 50% of their holdings. In a December 10 letter signed by Executive Chairman Michael Saylor and CEO Phong Le, the company called the threshold 'arbitrary' and warned it WOULD stifle innovation and undermine U.S. competitiveness in digital assets.

The firm argues DATs operate as active businesses—comparable to banks or insurers—rather than passive funds. Exclusion from MSCI indexes, it contends, would restrict access to passive capital flows critical for institutional adoption. The debate highlights tensions between traditional financial frameworks and the evolving $1.7 trillion digital asset market.