5 Potential Impacts of Trump’s Federal Reserve Takeover on Crypto Market

Jakarta, Pintu News – The idea that Donald Trump could take over the helm of the Federal Reserve in 2026 has been one of the biggest macro themes of the year. Many analysts think that this change could shake up global monetary policy and, indirectly, create a new dynamic for crypto markets.

1. More Aggressive Monetary Policy Shift

Analysts such as Plur Daddy and Joseph Wang think that the market has yet to fully understand how much impact a change in Fed leadership will have on global liquidity. An administration that pushes for aggressive rate cuts could create a huge spike in equity markets, increase speculation, and change the way capital flows into risky assets.

Also Read: Will Dogecoin (DOGE) be back in the hands of the bulls by early 2026?

2. Banking Deregulation Could Increase Demand for Securities

One of the predicted strategies is the easing of banking regulations to allow banks to hold more government bonds. This could create new structural demand for short-term bonds, while changing interest rate dynamics that affect the entire financial market, including digital assets.

3. Changes in Government Debt Structure Potentially Change Liquidity Flows

Another strategy discussed was shortening the average maturity of government debt, by shifting issuance from long bonds to short-term ones. This move aims to reduce borrowing costs and increase monetary flexibility, which under certain conditions could flow more liquidity into risky assets – including crypto.

4. Leverage of GSEs to Intervene in the Housing Market

Plur Daddy also highlighted the potential for increased leverage of GSE institutions to purchase MBS (mortgage-backed securities). This could shrink mortgage spreads and accelerate the transmission of monetary policy to the housing market. If successful, this strategy could add positive liquidity pressures to the overall financial market.

5. Impact on Bitcoin Could Be Different from Other Markets

While certain equity and commodity markets may skyrocket, crypto markets may not immediately feel the same impact. Plur Daddy expects Bitcoin to enter a phase of “re-accumulation”-a frustrating up-and-down period. The additional liquidity helps, but Bitcoin’s supply-demand imbalance is still a limiting factor in the short term.

Conclusion

If these changes in monetary policy and liquidity strategy are true, global financial markets could enter a new, more expansionary phase. While not all of the positive impacts will be directly felt by crypto, investors need to keep an eye on the Fed’s policy direction as major changes in global liquidity are often the start of major moves in digital markets.

Also Read:Michael Saylor Signaled New Bitcoin Purchases, BTC Price Ready to Skyrocket?

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

FAQ

What is Trump’s Fed takeover?

Trump’s Fed takeover refers to a possible change in the leadership and monetary policy direction of the Federal Reserve if Donald Trump returns to the presidency.

How will these changes affect the crypto market?

Major changes in interest rates and liquidity policies have the potential to affect global capital flows, which in turn impacts crypto market sentiment and volatility.

What strategies are expected to be used to manage liquidity?

Some of the strategies discussed included banking deregulation, short-term debt issuance, and increasing GSE leverage to purchase MBS.

What are the prospects for Bitcoin in this scenario?

Bitcoin may experience a phase of consolidation and re-accumulation, although additional liquidity could open up bullish opportunities in the medium term.

What is the current crypto market capitalization?

The total crypto market capitalization stands at around $3.05 trillion.

Reference

• NewsBTC. Will Crypto Market Benefit from Trump Fed Takeover. Accessed on December 10, 2025