The power struggle for the Federal Reserve Chairmanship has now entered a critical stage. Candidates Kevin Hasset and Kevin Waugh each have their own positions, and their choices will ultimately determine the direction of the Federal Reserve — which is no small matter for the entire crypto market.

**Significant Policy Style Differences**

Hasset advocates for more aggressive rate cuts, aiming to stimulate economic growth through liquidity injections. If he takes office, the pace of rate cuts could accelerate, increasing market liquidity in the short term, and risk assets like cryptocurrencies are likely to benefit accordingly.

Waugh, on the other hand, appears more conservative. He also supports rate cuts but only if accompanied by structural reforms; he opposes simply flooding the market with liquidity. Under this approach, rate cuts would be more cautious and prudent, which could be more conducive to market rationality in the long run.

**What It Means for the Crypto World**

Once loose monetary policy becomes mainstream, risk appetite tends to increase, and idle funds may flow into Bitcoin and other cryptocurrencies. However, don’t forget that Bitcoin once fell below $90,000 in November 2025, and the market itself remains quite volatile. Policy is just one factor; the actual market trend depends on a combination of supply, demand, and regulation.

**What to Watch Now**

The Trump administration plans to announce the final candidate in early 2026. Whoever takes the position will directly determine the future interest rate path and dollar liquidity flow. Many traders are already watching this closely, trying to anticipate its impact on various assets.

Ultimately, monetary policy is quite complex, and the final direction will depend on real-time economic data adjustments. Instead of relying solely on policy changes, it’s better to pay attention to fundamentals and market principles themselves.