U.S. President Donald Trump has indicated reluctance to appoint his economic adviser Kevin Hassett as the next Federal Reserve chair, potentially impacting bitcoin and crypto markets. This comes amid bitcoin's surge toward $100,000, fueled by expectations of lower interest rates. Trump's comments have shifted betting odds toward rival candidate Kevin Warsh.
Bitcoin prices have climbed into 2026, approaching $100,000 and gaining 10% since December lows, though still below the October high of $126,000. Traders anticipate a Federal Reserve policy shift, with markets buoyed by hopes of sharp interest rate cuts once Jerome Powell is replaced.
During a White House event, Trump praised Hassett but voiced hesitation about promoting him. "Kevin Hassett is so good … if I move him, I would lose you. It’s a serious concern to me," Trump said, according to Reuters. He added, "I actually want to keep you where you are, if you want to know the truth."
These remarks lowered Polymarket odds for Hassett becoming Fed chair, previously as high as 90% in December after Trump's signals. Instead, odds for former Fed governor Kevin Warsh rose to nearly 60%. Warsh has investments in crypto firms and advises the institutional crypto bank Anchorage, but analysts view him as less dovish than Hassett.
At a later Florida event, Trump confirmed his decision on the nomination: “In my mind, done,” as reported by the Financial Times. Earlier, in a Reuters interview, he named Hassett and Warsh as top contenders: “The two Kevins are very good. You have some other good people too, but I'll be announcing something over the next couple of weeks.”
Aurelie Barthere, principal research analyst at Nansen, noted in emailed comments that Hassett would have been “more dovish than Kevin Warsh and therefore more supportive for crypto.” Higher rates under a Warsh-led Fed could temper the bitcoin rally, which has benefited from rate-cut expectations.
