“His (Trump's) risk tolerance is higher than mine.” This candid remark from U.S. Treasury Secretary Bessent not only reveals the underlying strategy of Trump's tariff policy but also prompts Wall Street to reassess the pricing logic of risk assets. “Maximize the implementation of 'MAGA' without angering the market.” In an exclusive interview with the Financial Times, the 63-year-old U.S. Treasury Secretary Bessent publicly articulated his core work philosophy of balancing market and political agendas for the first time.
The former hedge fund manager, who has been in office for only nine months, is walking a tightrope between Trump's radical agenda and market stability in his unique way. Regarding the market turmoil caused by the Trump administration's large-scale global tariffs, Bessent revealed the underlying strategy: Trump's tariff "routine" is to "always announce high tariffs first to create negotiation leverage, then lower them."
1. Tariff Game and Market Turbulence, Crypto Assets Under Pressure
In the interview, Bessent admitted for the first time that Trump's announcement of large-scale tariffs in April, which triggered a severe global market sell-off, was actually an important part of Trump's "master plan." This “high pressure followed by compromise” strategy deliberately creates market volatility to generate leverage for negotiations.
● “His (Trump's) risk tolerance is higher than mine.” Bessent's frankness explains why Trump can tolerate the market's violent reaction after the tariff news is announced. This high-risk gaming strategy has caused ongoing turbulence in traditional financial markets.
● Since Bessent took office on January 28, the dollar has fallen by about 8%, marking the worst performance since the same period last year. Democrats believe this reflects a loss of market confidence. Illinois Democratic Congressman Sean Casten revealed, “Two weeks ago, I met with bankers in New York, and one of them said it was the first time in his career he heard people discussing hedging against the dollar. It’s crazy.”
● The crypto market has shown unique resilience against this macro backdrop. Despite the trade tensions triggering a widespread sell-off of global risk assets, Bitcoin and major cryptocurrencies quickly regained stability after experiencing short-term volatility. This performance further solidifies the unique position of crypto assets as both a safe haven and a risk asset.
Table: Key Policies and Market Reactions Since Bessent Took Office
Time
Policy Direction
Traditional Market Reaction
Crypto Market Reaction
April 2025
Trump announces global baseline tariffs
U.S. stocks drop over 3% in a single day, dollar index fluctuates
BTC briefly drops, then rebounds 8% within a week
May 2025
Tariffs on China temporarily reduced to 10%
S&P 500 rebounds 5%, treasury yields rise
Total crypto market cap grows 12%, DeFi locked value hits a new high
August 2025
Extension of the suspension period for tariffs on China
Market sentiment eases, volatility decreases
Bitcoin's correlation with U.S. stocks drops below 0.3
October 2025
No longer considering a 100% tariff on China
Risk assets rise broadly, dollar under pressure
Institutional inflows into the crypto market increase for two consecutive weeks
Source: Compiled by AiCoin
2. “Bessent Put”: A New Amulet for the Crypto Market?
This behind-the-scenes role of soothing the market has led many on Wall Street to view Bessent as a “safety valve” against Trump's extreme impulses. The market has even coined a new term—“Bessent put,” meaning investors believe Bessent knows the bottom line for policy advancement and will not let the market fall into real chaos.
● A Wall Street lobbyist stated, “At critical moments, he is a fighter for our camp.” This view resonates particularly strongly in the crypto asset space.
● As a former hedge fund manager, Bessent understands market dynamics well, and his previous moves to relax cryptocurrency regulations have led the crypto community to have special expectations of him. The specific manifestation of the “Bessent put” in the crypto space is that investors generally believe that during extreme market volatility, Bessent will step in to stabilize the situation and prevent systemic risks.
However, is this confidence excessive?
● Former Treasury official Stephen Myero warned: “Unlike his predecessor Mnuchin, who tried to play a ‘guardrail’ role, Bessent has no qualms about politicization, which could ultimately pose risks to the market.”
● Crypto market analyst Zhang Wei pointed out: “The essence of the ‘Bessent put’ is the market's expectation of rational decision-making. In the context of the increasing integration of the crypto market with traditional finance, this expectation naturally extends to the digital asset space. But the problem is that Bessent's political stance may limit his ability to act.”
3. Weak Dollar and Fund Flows, New Opportunities for Crypto Assets?
Since Bessent took office, the continuous decline of the dollar has become a focal point for the market. The dollar index's drop of about 8% is seen by traditional analysts as a reflection of market concerns over U.S. fiscal credibility, but for the crypto market, it may signify new opportunities. Bessent defended the dollar's depreciation, stating that as the trade deficit narrows, the dollar will rebound. However, this view has sparked different interpretations within the crypto community.
Zhang Haitao, founder of the decentralized finance protocol Oxygen, stated:
● “The weak dollar is driving global funds to seek alternative reserve assets,” and cryptocurrencies are clearly one of the options that cannot be ignored.
● According to AiCoin data, in the past three months, the global supply of stablecoins has increased by 15%, with particularly notable growth during Asian trading hours.
● At the same time, the number of addresses holding over 1000 BTC has increased by 5%, indicating that institutional investors are using market volatility to accumulate positions.
Analyst Li Ming from crypto market maker Folkvang Trading believes:
● “While the dollar trust crisis may not overturn the existing monetary system in the short term, it indeed creates an unprecedented development window for crypto assets. We are seeing more and more traditional financial institutions beginning to incorporate crypto assets into their asset allocation.”
It is worth noting that the Treasury Department, led by Bessent, has shown a relatively open attitude toward cryptocurrency regulation, which sharply contrasts with his hardline stance on tariffs. This differentiated position further reinforces the unique status of the crypto market in an uncertain macro environment.
4. Political Risks and Institutional Credibility, A Double-Edged Sword for the Crypto Market
The series of policies implemented by Bessent, while earning Trump's trust, has also sparked criticism regarding the politicization of the Treasury and the potential damage to institutional credibility.
● A former Treasury official warned that Bessent is “rapidly squandering” the credibility that the Treasury has built up over the long term, equivalent to gold: “If the Treasury is seen as an overly politicized institution, it will lose credibility in the eyes of the market, which will have serious and substantive consequences.”
For the crypto market, this political risk is a double-edged sword. On one hand, the weakening of traditional financial institutions' credibility may drive funds toward decentralized financial systems; on the other hand, increasing policy uncertainty may suppress institutional willingness to participate in the crypto market.
● Bessent, however, responded with market data. Since he took office on January 28, the S&P 500 index has risen by about 12%, while the 10-year U.S. Treasury yield, a benchmark for long-term borrowing costs, has fallen by more than 0.5 percentage points to 4%. “Where exactly is the market risk?” Bessent retorted firmly, “They are simply wrong.”
However, participants in the crypto market have their own judgments on this issue. The crypto fund Pantera Capital pointed out in a recent investment report: “The political risks in traditional financial markets are becoming a catalyst for decentralized systems. We observe that during periods of increased policy uncertainty, the activity and locked value of DeFi protocols often show counter-cyclical growth.”
Table: Correlation Between Political Risks in the U.S. Treasury and Crypto Market Performance
Risk Indicator
Impact on Traditional Financial Markets
Impact on Crypto Markets
Medium to Long-Term Trend
Decline in dollar credibility
Capital outflow, rising financing costs
Increased demand for BTC as an alternative store of value
May promote the mainstreaming of crypto assets
Increased policy uncertainty
Increased volatility of risk assets
Decreased correlation between crypto markets and traditional assets
Expansion of DeFi and stablecoin use cases
Questioning of institutional independence
Decreased market pricing efficiency
Increased activity on decentralized trading platforms
May accelerate the migration of traditional finance to the crypto ecosystem
Geopolitical tensions
Safe-haven funds flow to treasury and gold
Crypto assets exhibit unique risk-return characteristics
Promote the positioning of crypto assets as an independent asset class
5. Seeking Positioning for the Crypto Market Amid Policy Constraints
For Bessent, the real test will be whether he can help Trump deliver on the promise of an economic “golden age.”
● Although he anticipates that productivity gains from artificial intelligence will drive economic growth, issues such as slowing job growth and stubborn inflation in the U.S. since 2025 remain. Polls show that Trump's approval rating for handling the economy is not optimistic.
In this macro backdrop, the crypto market faces a situation of both opportunities and challenges.
● On one hand, the easing of trade tensions, a weak dollar, and the political risks in traditional financial markets create a favorable environment for crypto assets;
● On the other hand, policy uncertainty and potential market volatility remain significant risk factors.
As the U.S. Supreme Court's ruling on the legality of tariffs approaches in November, along with the uncertainty of Trump's final decisions, the crypto market may experience a new round of volatility. However, based on the characteristics of blockchain technology and the maturity of the decentralized financial ecosystem, crypto assets have shown resilience and independent trends that differ from traditional risk assets.
From being a behind-the-scenes “safety valve” to publicly defending Trump's tariff strategy, Bessent is walking a tightrope between the MAGA radical agenda and market stability. For the crypto market, the effectiveness of the “Bessent put” has yet to be tested in a real crisis.
But it is certain that in the context of questioning the dollar's credibility and the increasing politicization of traditional financial policies, crypto assets are reshaping their market positioning as a global safe haven and a new option for value storage. How far Bessent's balancing act can go may determine how much the crypto market benefits from this round of macro policy adjustments.
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