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Financial confrontation under political pressure is reshaping market expectations. Trump has recently been making frequent statements about pushing the federal funds rate down to 1%, even threatening legal action against the Federal Reserve Chair. The outcome of this high-level game could directly rewrite the trajectory of the crypto market in the coming years.

Behind Trump's aggressive stance are specific pressure tactics—he accuses the Fed of gross misconduct for spending $2.5 billion on headquarters renovations, attempting to force rate cuts through public opinion and legal threats. He has even publicly stated that those who do not follow his policy ideas are unfit to serve as Fed Chair.

The current situation is quite clear: although the Fed has cut interest rates three times this year, the current federal funds rate remains in the 3.5%-3.75% range. The latest policy meeting hints that there may be only one more rate cut next year. This stands in stark contrast to Trump's advocacy for ultra-low interest rates.

From a crypto market perspective, there are two completely different development paths for this confrontation—

If Trump succeeds in pushing for significant rate cuts, massive capital will seek higher-yield assets, and cryptocurrencies, as high-risk, high-reward assets, are likely to see a new wave of capital inflows, fueling market euphoria. But the opposite risk is also worth noting: political intervention could undermine the Fed's independence, leading to concerns about the stability of monetary policy and potentially triggering large-scale panic selling.

There have been similar shocking cases in history. The last time expectations of rate cuts fluctuated significantly, Bitcoin dropped over 30% within a month, directly causing liquidations of 180,000 traders. If this situation evolves into a legal confrontation, market volatility will only intensify.

From a power structure perspective, Powell's term as Fed Chair lasts until May 2026, but his board member term extends until 2028, indicating that this power game is far from over.

For investors, in the current environment, two types of assets should be the focus: first, projects with real application scenarios and fundamental support, which tend to garner premiums when liquidity is abundant; second, be cautious of purely narrative-driven altcoins, as once market sentiment reverses, these assets will be the first to suffer a bloodbath.

What do you think will be the outcome of this confrontation? Will a 1% interest rate mark the beginning of a new crypto bull market, or is there a hidden risk landmine?