Key Insights:
- Kevin Hassett and Jerome Powell may send different rate messages, which can confuse the crypto market in the short term.
- Bond moves and inflation fears can push traders toward safer assets first, slowing early crypto market strength.
- A clear rally may come only after the Fed gives one direction instead of two different voices.
The crypto market is watching the Federal Reserve very closely. Kevin Hassett is now the main name for the next Fed Chair. His style is fast and supports quick rate cuts, while Jerome Powell still talks in a slow and careful way.
When two important people speak differently about interest rates, the crypto market can get confused before any real help arrives.
Two Different Voices Can Make the Crypto Market Move Differently
Powell still talks about high prices in the economy and wants to wait before cutting rates. Hassett has clearly said he would start cutting rates much sooner.
A person who follows crypto may wonder: which voice should the market listen to?
This problem can start even before the job changes. A new Fed Chair may be named before Christmas.
Crypto traders are already expecting the market to turn stronger in December, so this timing can change how prices behave in the short term.
Crypto reacts fast to interest-rate news.
When two different messages come at the same time, crypto prices can move up and down within the same day. Traders are not sure which message is more important, so they switch between buying and selling very quickly.
Why Borrowing Costs and Bond Moves Matter for Crypto
To understand the next part, we must explain something in simple words.
A “yield curve” is just a way to compare borrowing costs for short time periods and long-term periods.
Short time means a few months. And Long time might mean many years.
If people think rates will fall soon, long-term borrowing becomes cheaper first. Many traders then put their money into government bonds because they feel safer there. When that happens, less money goes into crypto.
Now imagine this: Hassett says rates should fall fast, whereas Powell still talks about being careful.
Because of this mix, some traders may wait and choose bonds instead of crypto until they see a clear path. This slows down the crypto market even if lower rates are coming later.
Why the First Reaction May Not Be a Clean Crypto Rally
Hassett may start shaping market behavior even before he officially becomes Chair. His past comments already pushed people to think the dollar may fall and prices in the economy may rise again.
When some traders hear “prices may rise again,” they often choose safer assets first. They want stability before they take risks. Crypto usually gets strong after things feel steady, not during the first shock.
Lower interest rates often help crypto later. But the first reaction can be slow or weak because people want to see how the new Chair will guide things once the job fully changes.
Hassett once had a link to Coinbase.
Some people think this is good for crypto. But it can also bring attention from other regulators who want to show they are strict. This can add short-term worry for the crypto market.
Right now, the key point is simple: The crypto market may not rise straight away. It may move in a messy way first, because two different signals are coming from the same place.