Bitcoin tanks to $86,000 as Trump’s next move could have major impact
Topics: Donald Trump, Politics, Bitcoin, Cryptocurrency, US News, Money
Ellie Kemp
Featured Image Credit: Westend61/Getty Images
Topics: Donald Trump, Politics, Bitcoin, Cryptocurrency, US News, Money
Bitcoin briefly plummeted below $86,000 on Monday (December 1), months after hitting an all-time high of more than $126,000 in October.
It comes amid market uncertainty as China's central bank vowed to crack down on dodgy virtual currency.
The warning sent shockwaves through Asian markets and sparked a wider sell-off, with investors pulling back from anything seen as 'high risk'.
But while the drop looks dramatic, analysts say the bigger story might actually be happening thousands of miles away in Washington, D.C.
Advert
That’s because Donald Trump has confirmed he’s finally chosen who he wants to run the US Federal Reserve.
This is the central bank that controls interest rates, the cost of borrowing and, ultimately, how much money is flowing through the system.
On Sunday (November 30), Trump confirmed to reporters on Air Force One that he'd made his decision on who will be its next lead, as per Bloomberg.
The US president has already made it clear that he wants his nominee to deliver interest-rate cuts, which usually helps revive confidence in cryptocurrency.
Yet he failed to name his next pick outright.
“I know who I am going to pick, yeah,” Trump told reporters, adding: “We’ll be announcing it.”
Insiders believe current National Economic Council leader and Trump's top advisor Kevin Hassett is frontrunner for the job.
He would be overtaking current Fed Chair Jerome Powell. Former Fed governor Kevin Warsh, current governors Christopher Waller and Michelle Bowman, and BlackRock executive Rick Rieder could reportedly also be in with a chance, however.
Hassett is considered one of the most crypto-friendly candidates on the shortlist, as Markets.com reported.
He has disclosed owning over $1 million in Coinbase stock, previously worked on the exchange’s advisory council, and has advised other crypto firms.
When asked whether he’d accept the role by Fox News last week, he said 'yes'.
“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.”
However, Hassett failed to address what he described as 'rumors' of his appointment on CBS’ Face the Nation on Sunday.
Though he did comment on positive market reaction to the news that Trump is close to announcing his chosen lead.
“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 expected to reveal his Fed chair choice before Christmas. Watch this space, I guess!