The new Fed chair could bring the possibility of a wild bull market.

Written by: Cookie, Rhythm

On the prediction market Polymarket, the probability of Hassett being elected the next Federal Reserve Chair has risen to 86%, far ahead of other potential candidates for the position.

Barring any surprises, Kevin Hassett is expected to be the next Federal Reserve Chair—Trump’s favorite.

The Fed’s actions have always been a major factor influencing the cryptocurrency market. So, if Hassett ultimately becomes the new Fed Chair as the market expects, what impacts can we anticipate?

Accelerated Rate Cuts

At the end of November, Hassett stated that pausing rate cuts at this time would be “a very bad time,” as the government shutdown has already dragged down Q4 economic growth. He predicted that the shutdown would cause a 1.5 percentage point decrease in Q4 GDP. Meanwhile, he noted that the September Consumer Price Index (CPI) showed inflation was better than expected.

Earlier, on November 13, Hassett mentioned he expected Q4 GDP to decline by 1.5% due to the government shutdown and saw little reason not to cut rates.

Therefore, if Hassett becomes the new Fed Chair, he is expected to push for faster rate cuts, potentially lowering the federal funds rate below 3%, or even close to 1%, to stimulate economic growth and employment.

This is also what Trump wants to see.

Resuming QE

On December 1, the Fed officially ended its quantitative tightening (QT) policy, marking the conclusion of the balance sheet reduction process that began in 2022. Although some believe the effects may not be seen until early next year, expectations of easier liquidity have gradually been realized.

Hassett may be more tolerant of inflation, viewing the 2% inflation target as a flexible upper limit rather than a strict anchor. He would focus on employment and GDP growth, reduce the “gradual” data-dependent decision-making, and shift to more proactive, pro-growth interventions.

In September this year, Hassett told Fox Business that the US is in a period of supply-side prosperity, and that in an economy without real inflation, current interest rates are hindering economic growth and job creation. He also stated that the US is expected to achieve 4% GDP growth.

With a priority on economic development over inflation control, a Fed led by Hassett could be expected to restart QE.

Impact on Bitcoin

Every Fed Chair candidate, whether or not they discuss crypto directly, will have a structural impact on the cryptocurrency industry. Hassett, in particular, has notable connections to the crypto sector—he has publicly held over a million dollars in Coinbase stock and has served on Coinbase’s advisory board.

Additionally, he participated in a White House working group on digital asset policy, advocating for regulatory frameworks that preserve room for innovation, and has argued that crypto technology will be a key variable shaping the future economic structure. He has stated that Bitcoin will “rewrite financial rules.”

Hassett’s crypto background could reduce regulatory uncertainty, encourage institutional involvement, and drive the Fed to explore crypto integration. This could enhance Bitcoin’s legitimacy and liquidity, potentially pushing its price to new highs.

Many traders are optimistic about the market outlook after Hassett takes office, believing that his appointment will mark the beginning of a new bull market, expected around mid-next year, making the second half of 2026 a critical period for the cryptocurrency industry.