Recently, the conflict between Trump and Federal Reserve Chair Powell has intensified. Trump openly criticized Powell as a "fool" and even threatened to file a lawsuit for "gross negligence," targeting the budget issues of the Fed's headquarters renovation project. However, the true core of this dispute is actually Trump's attempt to exert political pressure to push the Fed toward an aggressive rate cut.

For the crypto market, this is big news. From one perspective, if political pressure actually drives an unexpected rate cut, liquidity will flood into high-risk assets, potentially benefiting Bitcoin and other cryptocurrencies. But conversely, the undermining of central bank independence and shaken investor confidence could lead to a rise in risk aversion, causing funds to flee. History shows that the cryptocurrency market is particularly sensitive to liquidity expectations—slight changes in policy direction can lead to sharp price fluctuations.

Currently, Powell is set to serve until May 2026. How this political game will ultimately end remains uncertain. But one thing is certain: in the coming period, macro political risks will become a key factor influencing the rhythm of the crypto market. Traders need to stay alert.