Crypto Markets Brace for ‘Run It Hot’ Policy Shift Under Trump
Bitcoin and crypto prices are on the rise following a tumultuous beginning to 2026, as Goldman Sachs suggests that a significant catalyst may soon spark a market surge. The bitcoin price skyrocketed to nearly $95,000 per bitcoin earlier this week, only to plummet sharply as traders reacted with panic to an unforeseen $17.3 trillion geopolitical earthquake. In the wake of a surprising turn on Wall Street, bitcoin and crypto traders are adjusting their strategies as the market adopts a fresh mantra that may ignite the next surge in bitcoin prices: “Run it hot.”
Federal Reserve chair Jerome Powell is anticipated to be succeeded by U.S. president Donald Trump in May, with the incoming Fed chair expected to show greater support for bitcoin, crypto, and lower interest rates. “They’re gonna run it hot like you can’t even believe,” Ben Hunt shared on X last month, referencing a post from Truth Social by U.S. president Donald Trump. “We are going to be encouraging the good market to get better, rather than make it impossible for it to do so,” Trump posted in December.
“Anybody that disagrees with me will never be the Fed chairman,” Trump stated, alluding to his upcoming choice for Jerome Powell’s successor at the Federal Reserve, anticipated this month. Trump expressed enthusiasm over the recent U.S. GDP growth figure of 4.2%, forecasting that the U.S. economy might expand by, “10, 15, and even 20 GDP points in a year—and maybe even more than that.” Meanwhile, as Trump pressures the Fed to implement interest rate cuts more aggressively than in recent years, analysts have indicated that the Fed might consider resuming asset purchases—a strategy akin to quantitative easing for economic stimulus. “Political pressures on the Federal Reserve could well extend beyond lowering interest rates to include asset purchases designed to influence housing affordability directly,” Mohamed El-Erian, posted to X.
This week, Trump announced plans to initiate a $200 billion mortgage bond-buying program aimed at reducing mortgage rates. The bitcoin price has experienced a significant decline from its October high of $126,000 per bitcoin, yet it still stands well above its levels prior to 2024. “Run it f***-ing hot, bitcoin to $1 million,” bitcoin trader and crypto derivatives pioneer Arthur Hayes stated on X, referencing Trump’s remarks about the $200 billion mortgage bond. “If you aren’t long, you are wrong!” Hayes, a cofounder of the BitMex crypto exchange and currently at the helm of the Maelstrom family office, has stated his expectation for the bitcoin price to reach $200,000 by early 2026. “As the amount of dollars expands, the price of bitcoin and certain cryptos will sky rocket,” Hayes wrote in a blog post this week, adding that he expects Trump to ramp up economic and market stimulus measures in the run-up to the November midterms. “You best believe [Trump] will not lose an election for lack of printing money,” Hayes stated.
