2025-12-31 03:25:27

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.

BTC-0,72%

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WalletDetective

· 9h ago

This wave of political game-playing isn't over yet, and the biggest fear for BTC is this kind of uncertainty... --- Expectations of rate cuts vs. central bank independence, is it really a choice? It's a bit tricky. --- Powell supports until 2026, and our current market depends on political favor. --- With political risks at an all-time high, should the crypto market buy the dip or cut losses... this is the real multiple-choice question. --- The Federal Reserve's budget revisions can become political leverage; this script is out of control. --- Once liquidity reverses, the crypto space becomes a leek field; you need to see it clearly. --- Is Trump's pressure tactics a catalyst or poison for BTC? It's hard to say. --- The key is whether Powell can hold on; otherwise, everything becomes uncertain. --- Crypto prices are dancing to the tune of US politics. Who would have thought? Should we clear out or add positions? --- The independence of the central bank has collapsed, confidence is gone. Don't just say crypto, other assets should also be sold.

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PortfolioAlert

· 13h ago

Expectations of rate cuts boost the market, political risks drag it down, this constant tug-of-war is making me dizzy. In the crypto world, it's all about being a slave to liquidity. Powell really can't hold up these past two years, being a middleman is tough. Rather than waiting until 2026, it's better to get in now and bet on a policy shift. Trump can bring up lawsuits over anything, it's hilarious. When liquidity loosens, any coin dares to surge, but when it crashes, everything goes down together. The independence of the central bank is increasingly becoming a joke. Short-term risk aversion sentiment has indeed increased; holding coins now is the safer bet. The key still depends on whether Powell can withstand the pressure. In macro battles, retail investors are just cannon fodder.

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LiquidatedNotStirred

· 23h ago

Interest rate cut expectations vs. confidence crisis, who will win this round? I only know that my stop-loss orders are already prepared, haha.

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RegenRestorer

· 23h ago

Is the rate cut expectation boosting confidence or causing a collapse? Anyway, we're just going to be chopped up like leeks again.

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OnchainArchaeologist

· 23h ago

Expectations of interest rate cuts vs. central bank independence, if these two clash, the crypto world will suffer.

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gas_guzzler

· 23h ago

Expectations of rate cuts vs. central bank independence, this tug-of-war has led to a wave of harvesting in the crypto circle. If they really implement aggressive rate cuts, liquidity spilling over could benefit BTC, but only if the central bank still maintains credibility. Powell won't step down until May 2026, and there are many uncertainties in between. Who dares to go all in? In the short term, political risks are obvious, and risk appetite quickly outpaces fundamentals. Being sensitive to liquidity is indeed true; a single statement yesterday could cause a sell-off, and the operational space is outrageously large. Instead of guessing policies, it's better to watch whether the market is in Fear or Greed. Is it a frenzy of rate cuts or a confidence crisis? Ultimately, it depends on whether the US stock market can handle this.

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