Bitcoin experienced a temporary drop below $86,000 on Monday, December 1, after reaching a record high exceeding $126,000 in October.
This decline occurred amid market instability as China’s central bank announced its intention to intensify its crackdown on questionable virtual currency practices.
This announcement caused ripples in Asian financial markets and triggered a broader sell-off, with investors retreating from what are perceived as ‘high risk’ assets.
Despite the steep decline, analysts suggest that a more significant development may be unfolding across the globe in Washington, D.C.
This is due to Donald Trump confirming his decision on the next leader of the US Federal Reserve.
The Federal Reserve is the central bank responsible for setting interest rates, influencing borrowing costs, and regulating the flow of money in the economy.
On Sunday, November 30, Trump informed reporters aboard Air Force One that he had made his decision on the next leader, according to Bloomberg.
The US president has already expressed that he wants his appointee to implement interest-rate cuts, a move that typically bolsters confidence in cryptocurrency markets.
However, Trump did not explicitly name his choice for the position.
“I know who I am going to pick, yeah,” Trump told reporters, adding: “We’ll be announcing it.”
Speculation suggests that the current National Economic Council leader and Trump’s top advisor, Kevin Hassett, is a leading candidate for the position.
If selected, he would succeed the current Fed Chair Jerome Powell. Other potential candidates reportedly include former Fed governor Kevin Warsh, current governors Christopher Waller and Michelle Bowman, and BlackRock executive Rick Rieder.
Hassett is perceived as one of the more crypto-friendly candidates on the shortlist, as reported by Markets.com.
He has disclosed holding over $1 million in Coinbase stock, previously served on the exchange’s advisory council, and has provided advice to other crypto companies.
When questioned by Fox News last week about whether he would accept the role, he responded affirmatively.
“Of course I’d have to say yes, because I want to serve my country and I want to serve my president,” he added. “President Trump and I have talked a lot about it.”
Nonetheless, Hassett did not address what he termed as ‘rumors’ of his appointment when appearing on CBS’ Face the Nation on Sunday.
He did, however, comment on the positive market response to the news of Trump nearing an announcement regarding his Fed chair selection.
“We had a great Treasury auction, interest rates went down and I think that the American people could expect President Trump to pick somebody who’s going to help them have cheaper car loans and easier access to mortgages at lower rate,” he said.
“That’s what we saw in the market response to the rumor about me.”
Trump is anticipated to announce his Federal Reserve chair selection before Christmas. Stay tuned for further updates!