Recently, both Wall Street and the crypto world have been buzzing with a piece of news — Trump has named Kevin Hassett as a hot candidate for the Fed chairman. This gentleman's background is eye-catching enough: he is not only an economic advisor in the political circle but also has made substantial investments in Coinbase and the digital asset sector.

Why does the market care about him so much? Simply put, if Hassert really takes over the Fed, the crypto market may face a round of liquidity-driven movements.

**What Does a Dovish Stance Mean**

Hassett does not hide his inclinations. He has repeatedly stated publicly, "If I become the Fed chairman, I will immediately start cutting interest rates," even suggesting a one-time cut of 50 basis points. This is not just a casual remark—according to market research, he may cut rates by more than 100 basis points in total by 2026 after taking office.

Imagine this scenario: the Fed opens the liquidity floodgates, and a torrent of funds pours into risk assets. High-elasticity varieties like BTC will be the first to benefit. As the main character at the application layer, ETH often performs well in an environment with ample liquidity.

**Attitude from Positions**

The most interesting thing is his real financial disclosure. This guy holds millions of dollars in stocks of a leading exchange and has also served as an advisor to the platform. Compared to the "I don't understand crypto" attitude of traditional central bank officials, Hassett is at least an informed person. He won't suppress this field out of ignorance; instead, he might introduce a more friendly policy framework.

**Influence of the Digital Asset Working Group**

Don't underestimate his work related to digital assets led in the White House. This means that the government is seriously considering how to treat crypto assets—from regulatory friendliness to the possibility of strategic reserves. Once the Fed chair supports this direction, the policy enforcement power will double.

**Concerns Under Opportunities**

Of course, there is no free lunch in this world. High liquidity often comes with high volatility. The interest rate cut cycle in 2026 is not a straight downward path; there may be fluctuations in between. Position management is more critical than ever—one must seize the liquidity window while also setting proper stop-losses.

In the short term, the expectations of such policies typically reflect in the market in advance. In the long term, the Fed's actual progress in interest rate cuts is the core. When the two are misaligned, it is the time that tests the mindset the most.

Combining the current technical aspects of BTC and ETH, there is hope to explore new heights supported by policy expectations. However, remember: the position size and risk tolerance must match, and do not let optimistic sentiments from policy cloud your judgment.