Trump’s Fed Chair Pick Influences Bitcoin Market

2 mins mins

Key Points:

Trump’s Fed Chair decision impacts potential Bitcoin pricing and market predictions.
An increase in Warsh’s nomination likelihood affects interest rate projections.
Hawkish monetary policies could put pressure on cryptocurrency value.

As Bitcoin nears $100,000, President Trump’s comments on Fed Chair nominations spark significant market reactions, affecting predictions and expectations in the financial sector.

Trump’s remarks alter perceived Fed policy direction, influencing Bitcoin’s momentum and broader market confidence amid potential monetary policy shifts.

Market Predictions Altered by Warsh’s Rising Nomination Likelihood

U.S. President Donald Trump recently addressed concerns regarding the Federal Reserve Chair position, altering market predictions. Trump’s statement suggested retaining economic advisor Kevin Hassett, whereas expectations previously favored Hassett’s appointment as Fed Chair. Instead, former Fed Governor Kevin Warsh emerged as a frontrunner, with prediction markets noting his increasing probability of election.

The shift in leadership sentiment due to Trump’s remarks places Warsh’s hawkish views at the forefront. This stance could prolong a high-interest-rate environment, potentially impacting Bitcoin’s performance as it nears $100,000. Analysts highlight Warsh’s hawkish approach, likely affecting rate cut expectations.

President Donald Trump mentioned, “I actually want to keep you where you are if you want to know the truth,” addressing Hassett.

Historical Context, Price Data, and Expert Analysis

Did you know? The potential change in Fed Chair nominees draws parallels to Trump’s 2018 appointment of Powell, highlighting tensions in implementing rate policies favorable to crypto market sentiments.

Bitcoin, with its market cap at $1.90 trillion and dominance at 58.99%, currently trades at $95,185.65. This represents a slight decrease of 0.19% over 24 hours but an increase of 5.04% over a week. The circulating and maximum supply figures remain at 19,976,996 and 21,000,000, respectively, as of January 17, 2026, according to CoinMarketCap.

bitcoin-daily-chart-5691 — Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 13:08 UTC on January 17, 2026. *Source: CoinMarketCap*

Market participants reacted swiftly, with Kevin Warsh’s nomination likelihood rising to nearly 60% on platforms like Polymarket. Hassett, conversely, witnessed a decline in support, as traders adjusted to the potential for extended higher interest rates, impacting both crypto and broader risk asset landscapes.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.