Are the shorts still holding on? They might not be able to anymore.

The changes that could happen in 2026 may be even more dramatic than you think—Powell’s term ends next year, and his likely successor is a true dove. What does this mean? It’s not just about rate cuts, but an overhaul of the entire monetary policy stance.

**Who will take over?**

The name Kevin Hassett has been coming up a lot lately. In interviews, he’s been blunt: "If I were Chair, I’d cut rates now." This aggressive stance is a complete departure from Powell’s caution. If he takes the helm, policy direction will do a 180.

**What can a dovish Chair do?**

Don’t underestimate the power of one person. A shift in policy bias can trigger a chain reaction:

First, the pace of rate cuts will pick up significantly, with larger cuts possible—even a return to QE can’t be ruled out.

Second, the dollar and US Treasury yields will be suppressed, instantly boosting global liquidity.

Most importantly, all that money will look for an outlet. As the asset most sensitive to liquidity, Bitcoin has been the biggest beneficiary every time there’s been a major liquidity injection. This time will be no different.

**The market is already front-running**

Don’t think this is some distant story—money is already pricing it in:

Last week’s data was staggering—the probability of a December rate cut jumped from 35% to 90%, more than doubling in just one week.

That rally in late November looked like a technical rebound on the surface, but it was actually traders betting on a "Fed policy pivot."

Even conservative institutions like JPMorgan have changed their tune, now predicting consecutive rate cuts in December 2025 and January 2026. When Wall Street’s weathervane shifts, are retail investors still hesitating?

**It’s not just a rate game**

The heart of this expectation isn’t about a few rate cuts—it’s that the Fed’s top spot may change hands. Swapping a hawkish gatekeeper for a dovish gate-opener means the liquidity environment for the next few years could be completely rewritten.

For the crypto market, this is much bigger than a cyclical rate cut. When excess liquidity has nowhere better to go, how much capital will flow into Bitcoin? The potential is huge.

The real question isn’t whether prices will go up, but whether your portfolio is ready.