Trump's plan to explode Bitcoin

Jerome Powell's mandate expired in May 2026, and Donald Trump has already announced that he considered four candidates to replace him and drastically lower interest rates. This crucial decision could radically transform monetary policy and create shock waves on the global financial markets. Prepare for a Bull Run in the coming months!

Trump upsets the Fed calendar to lower interest rates

Trump's early announcement marks a break with usual practices. According to Polymarket data, only 37 % chance exist that no successor is announced before December. This unusual strategy already transforms Powell into a fuse whose decisions are gradually losing in credibility.

Each Trump declaration on Truth Social provokes immediate fluctuations dimensions of the various candidates. This unprecedented situation allows investors to anticipate the future orientations of monetary policy several months in advance.

Therefore, traders are already starting to integrate the positions of each candidate in their strategies. This anticipation creates a Increased volatility In bond markets, the dollar and risky assets like Bitcoin.

Christopher Waller, the favorite who wants to lower interest rates

Christopher WallerGovernor of the Fed since 2020, is currently dominating polls on Kalshi. His speech last December particularly marked the spirits. By pleading for rate drops despite pricing riskshe caused a spectacular drop of 20 base points of the yield of the treasure at 2 years in just 15 minutes.

This immediate reaction illustrates the already considerable influence of Waller. Analysts now qualify it as “Shadow Fed Chair” From Trump, suggesting that he already guides market expectations while Powell still held the official position.

His monetary philosophy favors the growth and employment Faced with temporary inflationary pressures. Waller considers that tenders, including customs tariffs, fade faster than expected in inflation data. This pragmatic approach reassures markets on its ability to maintain an accommodating policy.

For Bitcoin, a Waller presidency would mean lower interest rate and a weakened dollar. These conditions historically promote risky assets and Strengthen Bitcoin's attractiveness as an alternative value reserve.

Kevin Walsh, the hawk who could surprise the markets

Kevin Walsh represents Waller's antithesis in this race. Former governor of the Fed between 2006 and 2011, this ex-banker of Morgan Stanley adopted a Resolutely conservative position. He clearly criticizes the current Fed, accusing him of having exceeded his mandate by supporting a lax budgetary policy.

Walsh advocates a strict approach: No drop in rate interest As long as inflation does not amount to the target of 2 %. This position contrasts radically with current market expectations and the wishes expressed by Trump for lower rates.

Paradoxically, Walsh's statements cause less reactions than Waller's. This difference is explained by its status outsiderunlike Waller who already sits on the Council of Governors. Nevertheless, an appointment of Walsh would trigger a reproduction brutal expectations.

The consequences would be dramatic for Bitcoin. Of the High actual interest rate And a reinforced dollar would weigh heavily on digital gold. Walsh thus represents the most unfavorable scenario For investors in cryptocurrencies, who should then deal with high financing costs until 2026.

Architects of a prolets policy

Scott Bessent already occupies a strategic position as secretary to the Treasury. During a recent interview on Fox Business, he dodged the direct question on his interest in the presidency of the Fed, declaring having already “the best position in Washington”. However, his positions suggest a Perfect synergy Between Treasury and Fed under his direction.

Bessen put on an aggressive liquidity strategy. By favoring the issue of short -term treasure bills Rather than long bonds, it maintains the artificially low long rates. This “Treasury Put” completes a monetary policy dovish and creates an environment of massive liquidity.

Kevin Hassett, director of the National Economic Council, shares this expansionist vision. He considers that there is “no reason” not to immediately lower the rates. Hassett Marie budgetary and monetary policy stimulus accommodating to maximize growth.

A nomination of Bessent or Hassett would trigger a Euphoria on the markets. This ultra-accomodent treasure-fed combination would create the ideal conditions for A surge in risky assets, Bitcoin in mind.

The impact of the drop in interest rates on Bitcoin?

Bitcoin reacts particularly to anticipation of monetary policy. THE Real interest rate negative And the depreciation of the dollar traditionally constitute its best catalysts. Conversely, a restrictive policy erodes its attraction in the face of assets bearing interest.

The Waller/Bessent/Hassett scenario would propel Bitcoin to new heights. These accommodating candidates would create an environment of cheap financing and abundant liquidity. In addition, their declarations already cause immediate reactions on the markets, offering significant trading opportunities.

In contrast, Walsh directly threatens Bitcoin's upward thesis. Its conservative convictions would strengthen the Competition of traditional gold and treasury bills against digital gold. Institutional investors would then favor guaranteed yields to speculative assets.

The choice of the next president of the Fed will largely go beyond American borders. This appointment will influence global monetary policies and will redefine the balance between Dollar, Euro and Yuan. European and Asian central banks will have to adapt their strategies accordingly, creating major arbitration opportunities for experienced investors, for example by having a strategic reserve in bitcoins.