Recently, the US policy circle has been embroiled in continuous turmoil, with a series of actions revealing profound implications for the crypto market.

First, there was an investigation controversy involving the Federal Reserve Chair. On the surface, it concerns building maintenance funds and congressional testimony records, but market participants generally believe this is more a manifestation of political maneuvering. The Chair responded afterward, stating that the investigation is unrelated to his testimony and maintenance matters, and the real reason lies in policy disagreements.

The core contradiction is quite straightforward—the Federal Reserve insists on an independent monetary policy stance and is reluctant to adjust interest rate policies hastily to cater to administrative demands. This stance conflict has been publicly exposed multiple times. More notably, relevant parties have publicly stated they are considering new leadership candidates, hinting that the Federal Reserve leadership may undergo restructuring.

**Why act now?**

The mid-term elections in 2026 are approaching, and economic performance directly affects political prospects. Lowering interest rates can boost stock market performance and stimulate consumption, thereby improving economic data. At this juncture, controlling monetary policy tools is crucial for achieving political goals.

**What does this mean for the crypto market?**

Every move by the Federal Reserve will ripple through the entire market. Lower interest rates mean increased liquidity—cost of funds decreases, and hot money seeking high yields will find it easier to flow into risk assets like Bitcoin and Ethereum. From a long-term perspective, if US dollar policy shifts, investor demand for alternative assets could rise significantly.

This power struggle has just begun, and the crypto market is closely watching each development.