Trump has nominated Kevin Woor to become the next Chair in May.

1. What does the new boss want to do?
The newly nominated Woor is an "hawk," fundamentally wanting to raise interest rates and tighten liquidity (shrink the balance sheet) to make money more valuable.
But reality is quite different: the US government is heavily in debt and needs the Fed to help "inject blood" to stabilize; the banking system also relies on loose policies. So, he is likely to be "hawkish in heart, dovish in action," wanting to tighten but not too much.
2. Will it cause a financial crisis?
The likelihood of a direct collapse is low, but market volatility will definitely increase.
The biggest risk is: if he really takes strong measures to drain liquidity, it could repeat a "cash crunch," making stocks, bonds, and the crypto market all suffer. But if something happens, the Fed is very likely to step back in with liquidity to rescue the market.
3. What impact will it have on the crypto space? (Key point!)
Short-term negative, already fallen. Because when the market hears "hawk," it gets scared, and the expectation of a stronger dollar will pull funds out of the crypto space.
Liquidity will be temporarily tight. Once the Fed takes any balance sheet reduction actions, the amount of easily borrowable money in the market will decrease, and high-leverage crypto traders will feel the chill first.
4. How to predict and act?
Watch several key signals: US inflation data (stubborn inflation is bearish), Treasury yields (rising too fast is a warning), Trump's fiscal plans (big spending will force the Fed to buy the debt).
In terms of actions, be conservative: reduce leverage, avoid reckless trading in altcoins, and focus on core assets like cash and Bitcoin, which are more resilient. Be prepared for the market to be like a "roller coaster": tightening causes sharp drops, fears of recession cause rebounds.

Summary: The new Chair will likely shout "tightening" to scare the market, especially making the crypto space nervous. But when they actually act, they may hold back, and the impact could be less severe than expected. Be ready for volatility, watch more, act less.