The potential nomination of President Trump’s Kevin Hassett for the position of Fed Chair is generating interest and excitement. Financial markets are watching the potential power pair with Treasury Secretary Scott Bessent. Could this initiate a Bitcoin supercycle?
Experts suggest that this unprecedented pair could reshape the monetary policy of the USA, strengthening risky assets like stocks and Bitcoin. At the same time, it will put pressure on savers and bondholders.
Bitcoin supercycle: How could the duo of Hassett and Bessent influence the cryptocurrency market?
If the potential Fed chair is confirmed, the Bessent-Hassett tandem would mean a complete inversion of the monetary regime after 2008.
Sight Bringer, a popular account on X (Twitter), notes that this combination would transform the Federal Reserve from an independent guardian of price stability into a liquidity tool aligned with Treasury policy. The research firm, pointing to coordinated management of debt, liquidity, and growth, stated:
"This is a reconfiguration of the regime."
Historically, the independence of central banks has been a priority. Now, the alignment of the Treasury and the Fed reminiscent of the 1940s and 1950s could prioritize growth over savings, gently restricting profitability and supporting risky assets. This could be a recipe for Bitcoin's obvious success.
Bessent and Hassett promote a growth-oriented ideology. President Trump could reportedly entrust Bessent with serving both as Treasury Secretary and Chief Economic Advisor.
The overall sentiment is that this could enable policy coordination on a scale not seen in decades. Therefore, Sight Bringer stated:
"One cannot reduce such enormous debt without a system blowup. It can only be outgrown or amortized by inflation."
Recent forecasts support this optimism. Treasury Secretary Bessent predicts GDP growth of 4% or more in the first quarter of 2026, pointing to strong consumer activity and favorable macroeconomic trends.
Hassett expressed similarly extreme optimism towards stocks and Bitcoin, with industry experts calling him a "turbo dove" for risky assets.
Short-term liquidity concerns amid USD strategy
Despite long-term optimism, some analysts warn of short-term challenges. Michael Nadeau emphasizes that tightening liquidity in the banking sector could negate the benefits of expected interest rate cuts.
Slower fiscal spending, tariffs, and lower interest rates for private creditors could temporarily restrict liquidity. This would delay the expected rally in risky assets.
In other words, while the ideological shift favors Bitcoin and equities, investors may encounter a shaky short-term market before the structural impact materializes.
The Trump team is reportedly seeking to weaken the dollar to boost U.S. exports, reduce imports, and encourage a return of industrial production. Lower interest rates would support these goals. At the same time, they would create a macroeconomic environment conducive to risky assets.
Analysts note that this aligns with the long-term goals of global capital flows and fiscal dominance. Furthermore, it would support the narrative of Bitcoin as a hedge against potential policy-induced inflation.
Based on this, a divide has already emerged between the cryptocurrency market and bonds, amid concerns that Hassett might pursue rapid rate cuts despite persistent inflation.
If Bessent and Hassett are confirmed, the U.S. may enter an era where coordinated fiscal and monetary policy enhances liquidity and prioritizes growth over savings.
Bitcoin investors may see this as a historic opportunity. Meanwhile, savers and holders of fixed-income assets will face increasing risks.
Caution is advised in the short term, but the macro backdrop suggests that the era of "higher rates for longer" may be coming to an end, potentially opening a multi-faceted uptrend in 2026.
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