Recent changes in the US political landscape are profoundly impacting the global financial structure, and participants in the crypto market need to pay close attention.

**Escalation of Power Struggles**

The power dispute between the White House and the Federal Reserve has escalated to the legal level. The Trump administration has questioned Fed Chair Powell, and disputes over decision-making authority have been brought before the Supreme Court. The January 21st hearing has become a focal point — this is not just personnel matter but a critical juncture concerning the independence of monetary policy.

**Why should crypto market investors pay attention to this?**

The answer is straightforward: the Fed’s interest rate decisions directly influence the liquidity environment across asset markets. When central bank policies become uncertain, digital assets like BTC and ETH often experience increased price volatility. Historical experience shows that every major shift in policy expectations can trigger chain reactions in the crypto market.

**Two opposing narratives**

On one hand, the White House’s logic is: agencies appointed by the president should respond to governing needs. This implies that interest rate policies might consider short-term economic goals more heavily.

On the other hand, the Federal Reserve emphasizes: financial decisions must remain professionally neutral and not become political tools. If the central bank loses its independence, market confidence in the dollar could waver.

**Potential impacts on digital assets**

If the Fed’s independence is substantively constrained, possible scenarios include:
- Decreased predictability of interest rate policies
- Increased volatility of the US dollar exchange rate
- Adjustments in institutional investors’ risk assessments of traditional financial assets
- Changes in the attractiveness of digital assets as alternative investments

In the short term, such policy uncertainty may intensify market volatility; in the long term, the market will gradually digest and reprice accordingly. For traders, the key is understanding how policy changes transmit to specific cryptocurrencies and market structures.