2026-01-20 05:35:02

Recently, there have been frequent moves in the US political arena. The Trump administration has launched an investigation into Federal Reserve Chair Jerome Powell, ostensibly over issues of financial transparency. In reality, the underlying logic behind this controversy is even more intriguing.

Powell responded swiftly, stating that the investigation has nothing to do with testimony or renovations, and that the real issue is that he "did not act according to the president's wishes." Essentially, it boils down to a clash between the independence of the Federal Reserve and the monetary policy demands of the ruling authorities—Trump wants to cut interest rates to stimulate the economy, while Powell insists on the central bank's prudent stance. The two sides have long been at odds.

This is not just a personnel adjustment issue. Trump's true goal is to send a signal to all central bank officials: those who do not cooperate with my policies will bear the consequences. Even more noteworthy is that he has publicly indicated potential candidates, which suggests that the Federal Reserve may face a reshaping of power.

For cryptocurrency market participants, this change could present opportunities. Trump has consistently supported the development of digital assets. If his influence can impact Fed decisions, the ongoing environment of low interest rates in the short term will keep market liquidity abundant, making it easier for risk assets, including Bitcoin, to attract funding. In the long run, as the certainty of US dollar policy diminishes, Bitcoin’s appeal as an alternative asset will significantly increase.

The interest rates controlled by the Fed are like the tap of the economy. Lowering interest rates means monetary easing, reducing the cost of funds, and both institutions and retail investors are more willing to invest in high-risk, high-reward sectors; raising interest rates has the opposite effect, causing hot money to retreat rapidly, and the entire risk market will feel the chill.

The timing is also worth noting. The US midterm elections in 2026 are approaching, and economic performance directly affects votes. This is a political move by Trump to secure re-election. Lowering interest rates can boost the stock market and stimulate consumption, making his political achievements look good. Therefore, this power struggle over the Federal Reserve is essentially a preparation for the upcoming election. On the surface, it’s a policy game; in reality, it’s aimed at political interests.

This game has only just begun, and there are many uncertainties ahead.

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ProxyCollector

· 16h ago

If the rate cut really happens, BTC will take off. Everyone is waiting for this signal now. --- Basically, it's political struggle. Economic policies are just a cover; the crypto circle just watches the show. --- Trump's move is ruthless—directly replacing people with obedient ones. The independence of the Federal Reserve is in jeopardy. --- Ample liquidity = hot money running wild. Our opportunity has arrived, haha. --- Before the 2026 elections, they must pump the market. I understand this logic—betting on rate cuts. --- Is the era of central bank being sidelined coming? Feeling a bit anxious. --- The logic of Bitcoin as a safe haven asset is becoming more and more solid. --- This game is played as if the economy is just a performance. Ridiculous. --- Once the easing cycle is established, all risk assets will take off. I'm waiting for it. --- If the Federal Reserve drops the ball, how long can the dollar's credit last? Long-term bullish on BTC.

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ForeverBuyingDips

· 16h ago

As soon as the rate cut expectation emerged, the crypto circle became restless. This move indeed hides deadly risks. Trump's confrontation with Powell is just to pretend to be obedient. When they print money and loosen policies, our Bitcoin will truly have hope. Dollar easing = inflation expectations = non-sovereign assets become popular. This logical loop is complete. Political leverage and the rise and fall of coin prices are indeed linked. No wonder institutions are betting on this power shift. But don't be fooled. The promised rate cut still has to wait for concrete evidence. For now, it's just talk. Before the midterm elections, this move seems to be paving the way for a big liquidity injection. American politics really playing 4D chess with our bags huh... The independence of the central bank is being eroded, but retail investors are actually gaining benefits. This deal is quite profitable. Those who bought into the rate cut concept will have to cut losses if the opposite happens. The risk is really not small.

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RugPullAlarm

· 16h ago

As soon as expectations of interest rate cuts emerge, large holder addresses start accumulating coins. I've seen this on-chain data for a long time. I'm just worried that it might be a false alarm again, with the central bank reversing policies, hot money fleeing instantly, and retail investors getting trapped. But on the other hand, who truly benefits in this power game? I'm more interested in institutional addresses that might significantly adjust their positions due to policy changes... Trump plays political chips, and we have to watch out for Ponzi schemes... The market tricks are too deep. It seems to be good news for Bitcoin, but I always feel that someone might be accumulating shares in advance, then dumping when retail investors follow suit. We need to keep a close eye on the movements of addresses with large transfers. Honestly, it all depends on how the interest rate policy faucet is turned, which determines where hot money flows. But these days, who dares to fully trust policy transparency? The real opportunities still depend on on-chain data; don’t let public opinion set the rhythm.

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ShitcoinConnoisseur

· 16h ago

The expectation of rate cuts rises together with Bitcoin's automatic rally; this logic has been played out many times. The real question is whether Powell can withstand the pressure from Trump—that's the real point of interest. Trump's move is indeed ruthless, directly undermining the Federal Reserve's independence. How many central banks will dare to resist in the future? Short-term liquidity flooding is real, but the long-term costs of this power restructuring could be even more damaging. Power struggles are just that—power struggles. I just want to know if this will directly lead to a decline in the US dollar's credibility; if that happens, Bitcoin will truly have a story to tell. Another political drama unfolds. Every time, they claim to target short-term opportunities, but no one can really predict how things will unfold next.

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potentially_notable

· 16h ago

Once the expectation of interest rate cuts emerges, I should be buying the dip... Unfortunately, I have no bullets left. --- Basically, it's a political game; retail investors are still debating whether prices will go up or down. --- Wait, can Trump really change the Federal Reserve? That’s a lot of power. --- I agree that a low-interest-rate environment is beneficial for BTC, but don’t place all your hopes on politicians. --- Haha, it’s another power game. Retail investors might as well wait to be harvested. --- A stable stance vs. political demands—this kind of division is actually more detrimental to the market. --- The rate cuts of the past two years pushed prices to sky-high levels, and now they want to do it again? Can't learn. --- It feels like risk assets are really about to take off. If you don’t get in now, it’s really too late. --- The certainty of dollar policy has decreased... This is crucial for those engaged in cross-border transactions. --- In the 2026 mid-term elections, betting early on the economic outlook—brilliant.

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