Wosh confirmation + Trump visits China, two major events happening simultaneously

First: Wosh confirmation.
The Senate confirmed Kevin Wosh as Federal Reserve Chair with a vote of 51 to 45, officially taking over from Powell on May 15.
Regarding Wosh, three key points:
① He will shrink the balance sheet. Advocates aggressive reduction of the Fed’s $6.7 trillion assets, which will initially withdraw liquidity and pose short-term risks to risk assets, including Bitcoin.
② He also wants to cut interest rates. This is a “tightening then easing” strategy, suppressing inflation expectations through balance sheet reduction, then lowering rates. If inflation is controlled and he shifts to easing, Bitcoin’s medium-term narrative will be very favorable.
③ He is an insider in the crypto circle. He has said, “If you are under 40, Bitcoin is your new gold.” He has publicly invested in Bitwise and Electric Capital, and has in-depth observations on Layer 2 solutions. He is the first Fed Chair in history to truly “understand crypto.”
For the crypto market, Wosh’s appointment is overall more beneficial than harmful. There may be short-term volatility, but the long-term narrative is evolving in a favorable direction.
Looking at the content from yesterday’s article, Wosh’s appointment—whether he insists on tightening, making rate cuts unlikely this year, or enters a rate-cutting cycle after taking office—perhaps the decision lies in Trump’s hands.
Second: Trump visits China, today in Beijing.
Huang Renxun and his team are here, and the market is hopeful that China may relax restrictions on NVIDIA chips. After the news broke, chip futures and Asian stocks rebounded.
But a bigger variable is the US-Iran standoff. If Middle East tensions escalate, oil prices will continue to rise, inflation will stay high, and the Fed will find it harder to cut rates, which will ripple into the crypto market.
Another piece of information worth noting: Binance CEO Richard Teng attended a U.S. House hearing this week.
From Middle East geopolitics to U.S. congressional hearings, and then to China-U.S. meetings, the crypto industry is entering the core agenda of global political and economic affairs at an unprecedented speed. This was unimaginable just two years ago.