The Fed's power game is rewriting the script for the crypto market.

You have all seen the recent developments—an increasing "pressure" from a certain country's leader on the Federal Reserve Chair. This is not just a simple dispute over renovation costs; the real underlying demand is for a significant rate cut. Once a new chair takes office, the Fed's independence will be under pressure, and a radical easing cycle may truly begin.

What does this mean? For the crypto market, this could be the strongest bullish catalyst in 2026.

**Why do I say that?**

First, in a low-interest-rate environment, global hot money will inevitably seek higher yields. Assets like Bitcoin and Ethereum, which are highly volatile and high-yield, will become the top choices. Second, a relatively friendly Fed leadership could lead to substantial improvements in the regulatory environment, significantly boosting long-term confidence. Lastly, once suppressed liquidity is unleashed, not only BTC and ETH will benefit, but also altcoins like SOL and DOGE, which are highly correlated with macro sentiment, may have their own opportunities. The DeFi sector is also expected to follow suit.

**How should you actually operate?**

In the coming months, keep a close eye on news about the new chairperson—any dovish signals could cause market optimism to explode. Looking further into 2026, if the rate cut cycle really accelerates as the market expects, abundant liquidity will completely change the market landscape. This is a good long-term holding logic.

**But don’t forget the risks.**

Legally, replacing the Fed Chair faces huge resistance, and the process could be full of twists and turns, with short-term market volatility inevitable. On the other hand, these fluctuations are opportunities to buy the dip.

Ultimately, this power struggle is weaving the most critical 2026 story for the crypto market—a legendary liquidity feast. Be prepared, but don’t let FOMO cloud your judgment.