The expectations of the new FRB system are shaking up the Bitcoin market

ZKProofster · 2026-01-15T21:46:46+00:00

The essay discusses the anticipation surrounding Donald Trump's selection of a successor for Jerome Powell at the Federal Reserve, focusing on potential shifts towards more dovish monetary policy. In this context, Bitcoin's price near $95,440 reflects a bullish market sentiment, influenced by expectations of increased liquidity and relaxed regulations. The evaluation of candidates like Michelle Bowman highlights how these changes may impact risk assets and the cryptocurrency market. Investors remain vigilant regarding the forthcoming Fed personnel decisions and policy directions.

ZKProofster

2026-01-15 21:46:46

Abstract generation in progress

Key Points:

President Trump is progressing with the selection of Jerome Powell’s successor, with a focus on a shift towards dovish policies
Candidate evaluations of Michelle Bowman and others are at a critical stage that could influence monetary policy direction
Bitcoin(BTC) is currently trading around $95.44K, with market sentiment experiencing significant fluctuations

Policy Expectations Reflected in Bitcoin Prices

Bitcoin(BTC) is currently trading near $95,440, with a market capitalization of $1.91 trillion and a market dominance of 56.48%. Over the past 30 days, it has risen by 9.02%, indicating a growing bullish sentiment among market participants.

This upward trend is largely influenced by personnel changes at the Federal Reserve during the Trump administration. Specifically, expectations of a shift towards a more liquidity-focused monetary stance are being well received across risk assets.

Impact of Considering a New Fed Chair Candidate

President Trump is conducting interviews with multiple candidates, evaluating prominent figures such as Christopher Waller, Michelle Bowman, Kevin Hasset, and Kevin Warsh. He has commented, “These are excellent candidates, and a final decision will be made soon,” suggesting that a decision is imminent.

Market participants are particularly anticipating a policy shift towards a dovish stance from candidates like Bowman. Transitioning from tightening to easing monetary policy tends to be positive for risk assets, including cryptocurrencies.

Reading the Correlation Between Monetary Policy and Crypto Markets from History

In 2017, when Jerome Powell was nominated, Bitcoin experienced a significant rally within the broader market cycle. A shift towards a dovish Federal Reserve leadership increased liquidity supply and boosted demand for digital assets.

Similar mechanisms are believed to be at play with the current Fed personnel changes. A more accommodative monetary stance could also lead to easing regulations, potentially fostering a long-term growth environment for the crypto market.

Market Sentiment Fluctuations and Investor Responses

Ahead of the Fed chair decision, market participants are expressing a variety of outlooks. Speculation about the policy stances of candidates like Bowman is increasing daily, and speculative trading activity is becoming more active.

Bitcoin’s price fluctuations reflect the volatility created by the gap between policy expectations and actual developments. Investors should continue to monitor the Fed’s personnel decisions and initial policy directions closely.

Disclaimer: The information in this article is provided as a general market commentary and does not constitute investment advice. Please conduct your own research and analysis before making investment decisions.

BTC-1.37%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.