The new chairman of the Federal Reserve has officially taken office, packed with excitement! But his subsequent policies and measures will also be full of negative effects on Bitcoin ， Please refer to the analysis in the following text. Kevin Walsh was officially sworn in as chairman of the Federal Reserve, President Trump was present in person, and Justice Clarence Thomas presided over the ceremony. President Trump stressed that the Federal Reserve is the pillar of the world financial system and must remain completely independent. The world is watching you! When taking the oath, Walsh also made an inverted triangle gesture... This scene, this machine, this detail... is a bit funny! Walsh's inauguration - hawkish teeth are shrinking their balance sheet, dovish honey is cutting interest rates! (1) Background of the event Kevin Walsh was officially sworn in as the Chairman of the Federal Reserve at the White House. This is the first inauguration ceremony held at the White House in nearly 40 years, sending a clear signal to the market. Walsh's financial disclosure shows that he is the first Federal Reserve chairman to hold cryptocurrency assets, with holdings involving more than 20 projects such as Solana, Polymarket, dYdX, etc., interpreted by the market as "cryptocurrency friendly". (2) Three major policy shifts Firstly, the expectation of interest rate cuts - the market has already priced in advance. Most economists do not expect a rate cut before the end of 2026. Cutting interest rates is like saying honey on the lips, and it is extremely difficult to implement. Secondly, pushing for balance sheet reduction - this is the true hawkish tooth. Walsh advocates accelerating balance sheet reduction through a combination of "interest rate cuts+balance sheet reduction" - lowering interest rates to boost sentiment and reducing balance sheet to extract liquidity. The correlation between Bitcoin and the size of the Federal Reserve's balance sheet is much higher than its correlation with interest rates. Thirdly, reduce transparency. Walsh plans to reduce FOMC meetings from 8 to 4 and decrease forward guidance. 'Unpredictable' itself is a policy, and market volatility will be structurally inflated. (3) The impact of Bitcoin Short term: The ceremony itself is a "signboard", be wary of the pullback of "buying expectations, selling facts". The fluctuation may intensify around 23:00 Beijing time. Medium to long term: balance sheet reduction promotion+long-term interest rate increase+volatility rise=structural bearish. Within three months of the new chairman taking office, the average yield on US Treasury bonds rose by 50 basis points. ✅ Core conclusion: The short-term landing of boots may cause fluctuations, while the expectation of medium - to long-term balance sheet contraction is the core suppression.