Bitcoin Nears $100K as Bank of America Warns $6T Risk Market

Bitcoin nears $100,000 as Fed-nominee uncertainty and policy bets lift crypto

  • Bitcoin rose into 2026, nearing $100,000 and gaining about 10% from December lows.
  • Traders expect a 2026 Federal Reserve policy shift, supporting crypto and equity markets.
  • Donald Trump said he may keep Kevin Hassett at the White House, lowering Hassett’s chances to replace Jerome Powell as Fed chair.
  • Polymarket odds shifted toward former Fed governor Kevin Warsh, who has crypto ties and could mean less dovish Fed policy.
  • Goldman Sachs says a major catalyst could be about to ignite the market, while other industry warnings have also surfaced.

Bitcoin and broader crypto prices climbed into 2026, with bitcoin nearing $100,000 as markets reacted to shifting expectations about U.S. Federal Reserve leadership and policy. Prices rose roughly 10% from December lows, and investors watched signals about who President Donald Trump might nominate to replace Jerome Powell.

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The Bitcoin Price remained below its October peak of about $126,000, and traders continued to bet on a 2026 Fed policy flip. Goldman Sachs says a major catalyst could be about to ignite the market.

At a White House event, Donald Trump told Kevin Hassett, "Kevin Hassett is so good … if I move him, I would lose you. It’s a serious concern to me," and later said, "I actually want to keep you where you are, if you want ‌to know the truth," as reported by Reuters. Trump also said he has made his decision on a nominee: "In my mind, done," reported the Financial Times.

Those comments cut the Polymarket odds for Hassett after they had approached about 90% in December and lifted odds for Kevin Warsh to almost 60%. Polymarket is a public prediction market where users trade odds on future events.

Analysts note a nomination of Hassett would likely be seen as more supportive of lower rates, while Warsh is viewed as less dovish. Aurelie Barthere, principal research analyst at Nansen, said Hassett would have been "more dovish than Kevin Warsh and therefore more supportive for crypto."

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Less dovish means a Fed chair is less inclined to favor lower interest rates. If rates stay higher for longer, investors say that could reduce upward pressure on risk assets like bitcoin.

The report also notes Warsh has invested in crypto companies and advises institutional crypto bank Anchorage, which market participants cite when assessing his likely impact on crypto policy and markets.

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