Recently, there has been a major stir at the Federal Reserve. Trump publicly issued a strong statement—any policy stance that doesn't align with his expectations for rate cuts should not expect to sit in the Fed Chair position. Once this statement was made, the global financial circles instantly erupted, and the crypto markets also experienced intense volatility.

The issue is, Chair Powell is set to step down in May 2026, and Trump has long had his eyes on dovish candidates like Waller and Haskett. This essentially puts a tight leash on future Fed policies. Trump has repeatedly criticized Powell for being too conservative on rate cuts, arguing that: when the market is doing well, rates should be proactively lowered, and inflation can be addressed later. The key is to avoid raising rates and killing market vitality.

Of course, the Fed isn't willing to show weakness. Goolsbee has explicitly stated that policy decisions should not be influenced by political pressure, and that the central bank must maintain independence. The game of chess between both sides has already reached a fever pitch.

For our crypto market, this is a double-edged sword. If expectations for rate cuts really heat up, dollar liquidity will become more relaxed, and BTC and ETH might see opportunities for capital inflows. But the problem is, if policy uncertainty intensifies, market volatility will also increase—recently, BTC has been fluctuating around $87,000, ETH is still being held below the $3,000 mark, and funding rates have even shown persistent negative signals indicating short positions, all of which suggest that market sentiment is quite unstable.

So the key question is: can this political and central bank confrontation reignite expectations for rate cuts? Is there a chance for ETH to break through the $3,000 resistance with this wave of expectations? Can BTC stay above $88,000? These still require ongoing observation.