Trump demands Fed rate cuts: What does it mean for Bitcoin and cryptocurrencies?

Source: CriptoTendencia Original Title: Trump says the new Fed chair must cut interest rates immediately Original Link: According to US President Donald Trump, the new head of the Federal Reserve [image]Fed( must immediately cut the interest rate. These statements come just hours before the central bank’s monetary policy announcement after the last meeting of 2025. How could this affect Bitcoin and the rest of the cryptocurrency market?

The year 2025 was marked by tensions between Trump and the Fed chair, Jerome Powell. This confrontation has multiple interpretations in the markets, including concerns about possible political interference in the central bank’s autonomy. The latter becomes a source of distrust toward the US economy.

Even so, Trump continues to insist on what he considers an urgent need: lowering the interest rate. He claims that inflation has practically disappeared and that a rate cut could unlock economic growth potential which, in his view, remains repressed by restrictive monetary policy.

For this reason, his plans aim to appoint someone with an easing monetary policy outlook to lead the Fed. Powell’s term ends in May 2026, which means Trump’s nominee could begin the confirmation process )with prior approval from Congress( in the coming months.

In that context, Trump stated that the new central bank leader must immediately lower the cost of borrowing.

Who will Trump nominate for Fed chair?

So far, it is unknown who will be nominated to replace Powell as head of the Federal Reserve. The most mentioned name is Kevin Hassett, a strong advocate of monetary easing. On numerous occasions, Hassett has argued that the economy needs a drastic rate cut.

According to bets on the prediction platform Polymarket, Hassett clearly leads the preferences with a 76% probability. The second best positioned candidate is Kevin Warsh, with 12%. Thus, if Polymarket’s predictive ability is any indication, it seems almost certain that Hassett will be nominated to chair the Fed.

![Hassett lidera las preferencias como el nominado de Trump al puesto de presidente de la Reserva Federal.])https://img-cdn.gateio.im/webp-social/moments-bb492e8cc6-a32850e00f-153d09-6d5686.webp(

Trump’s new statements on monetary policy come at a key moment. This Wednesday, the Federal Open Market Committee )FOMC( decision will be announced. According to current projections, there is an 89.2% probability of a 25 basis point interest rate cut.

![Las posibilidades de un recorte de tipos en diciembre son abrumadoras.])https://img-cdn.gateio.im/webp-social/moments-e8ae82156b-33ddb7a873-153d09-6d5686.webp(

Possible impact on the cryptocurrency market

The scenario described is of maximum interest for the cryptocurrency market. Not only could Wednesday’s decision generate significant price movements for Bitcoin and other digital assets, but the possibility of a new Fed chair implementing aggressive rate cuts could trigger a considerable rally.

This relates to the increase in liquidity that usually flows into equities in low-rate environments. Capital seeks to take advantage of the growth climate derived from the low cost of borrowing, which favors higher-risk assets. In this context, both stocks and cryptocurrencies would be especially well positioned.

For investors entering the crypto market at this time, the potential return could be notable, considering that prices remain relatively low.