Wosh Hearing Day: Rate Cuts and Crypto in Focus Is the Fed About to Change?

Brothers, tonight at 10:00 PM, a man who might decide your crypto position's life or death is going to take the stage.

Kevin Wosh, the Fed Chair successor appointed by Trump, will face a confirmation hearing before the Senate Banking Committee.

You think this is just a political formality?

Too naive.

Once this person takes office, the entire underlying logic of monetary policy could be rewritten. Whether Bitcoin soars or gets pressed down and rubbed into the ground depends entirely on what he says tonight.

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Who exactly is Wosh?

Simply put—he's a "split personality" player.

On one hand calling for rate cuts, on the other clamoring to shrink the balance sheet.

Sounds contradictory, right? But that’s precisely what makes him so terrifying.

In July 2025, he said very plainly: "Interest rates should be lower." At the same time, he emphasized in another setting: "The Fed’s balance sheet is several trillion dollars larger than needed, and must be slimmed down."

Translated into plain language:

I’ll give you rate cuts for a short-term thrill, but secretly pull the plug at the bottom of the pool.

Rate cuts → Short-term celebration

Balance sheet reduction → Long-term water withdrawal

This move is much more ruthless and sneaky than Powell’s awkward "printing money while hawkish" approach.

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For the crypto market: short-term is a love potion, long-term is poison?

First, the short term.

If Wosh reaffirms tonight at the hearing that "interest rates should be lower," the market will interpret it as a dovish signal. Risk assets will party, Bitcoin will surge, and the altcoin season might come faster than expected.

But don’t rush to go all-in.

You need to see his true hand—his understanding of inflation is completely different from Powell’s.

He once said in an IMF speech, and I suggest you print it out and stick it on your bedside table:

"Don’t blame Putin or the pandemic for soaring inflation. The root cause is reckless government spending and money printing."

He also said: "The Fed’s complex DSGE models are fundamentally built on illusions."

Heartbreaking, right? Even more so is the second part:

"The more the Fed intervenes outside its responsibilities, the more it damages its core ability to stabilize prices."

Translation: Don’t expect the Fed to save the market anymore. Don’t expect it to print money for employment, stocks, or votes. Its only KPI is—killing inflation.

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Wosh repeatedly emphasizes: The Fed’s credibility comes from its independence, which must not be hijacked by Washington’s political whims.

Sounds great, right?

But you need to understand what independence really means.

It means that when the economy slows, unemployment rises, and the stock market crashes, he won’t easily cut rates and print money.

It means the "Put" options of the Fed might be completely invalidated.

It means the past decade’s reliance on "cut and rescue" is over.

For crypto, the long-term trend of tightening liquidity won’t change. Shrinking the balance sheet is that silent killer.

Rate cuts are just sugar coating; balance sheet reduction is the real missile.

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Rate cuts give you three seconds of pleasure, balance sheet reduction causes three years of pain.

Don’t see Wosh as a dove; he’s an eagle disguised as a dove.

The Fed is no longer your nanny; it’s becoming your drill instructor.

Tonight’s hearing, what should you watch?

Don’t focus on what he says in the surface talk, keep an eye on these three points:

1. Attitude towards balance sheet reduction: if he says "the balance sheet must be significantly shrunk," that’s long-term bearish.

2. Attribution of inflation: if he keeps blaming fiscal deficits, that indicates a strong stance.

3. Response to political pressure: the more he emphasizes independence, the less likely he’ll ease up easily in the future.

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I know you might feel a bit anxious after hearing this.

But don’t be afraid; recognizing reality itself is a form of strength.

In the past two years, many still fantasized that the Fed would return to the 2020 easing mode. If Wosh really takes office, that fantasy will be shattered completely.

The good days for crypto have never depended on the Fed’s charity. It’s built on halving, technology, adoption, and people like you who truly believe in this track.

Whether it’s Wosh or Powell, they’re just background players.

Bitcoin doesn’t need the Fed’s mercy; it just needs the Fed not to cause trouble.

Tonight at 10:00 PM, see you at the hearing. #比特币反弹 $BTC