The recent movements of Bitcoin and Ethereum have added a new variable.

Trump has already made it clear that a new Federal Reserve Chair will be finalized in early January next year. There is a key figure behind this — Treasury Secretary Yellen. It is understood that she is not only leading the selection process for the Fed Chair but also actively promoting the implementation of interest rate cuts.

From the perspective of the crypto market, what does this mean? A rate cut cycle often increases liquidity, and the expectation of rate cuts itself can trigger reallocation of funds. The interest rate cut policies strongly promoted by Yellen are aligned with a new agenda that could fundamentally rewrite the Fed’s decision-making framework. How well the Treasury Secretary’s views match those of the future Fed Chair directly affects the direction of monetary policy.

In the short term, the rising expectation of rate cuts makes BTC more attractive. However, the uncertainty during the power transition period cannot be ignored. The market is waiting for clearer policy signals.