Gate 2025 Year-End Community Gala #美国贸易赤字状况# The Federal Reserve Chair Under Investigation, but the Crypto World Is Boiling!
The latest big news: Powell is under criminal investigation, ostensibly over testimony disputes related to the Federal Reserve headquarters renovation project, but everyone can see that behind it is the Trump administration's relentless push for rate cuts. The prosecutor, a long-time ally of Trump, approved the investigation, while Powell openly called it "a blatant attack on the independence of the central bank." At first glance, it seems like political struggle, but it actually affects the entire financial ecosystem. Why does Trump insist on rate cuts? A simple calculation makes it clear—$37.7 trillion in national debt is overwhelming, and each 1% cut in interest rates can save nearly $400 billion in interest payments. The Fed is steadfastly committed to inflation targets and refuses to compromise. This game directly targets the autonomy of interest rate policy. For the crypto circle, this is not just watching a show. History has the answer: during the zero-interest-rate cycle from 2020 to 2021, BTC surged 1700%, and ETH skyrocketed 1900%. When liquidity loosens, funds rush into high-risk assets. Standard Chartered Bank even predicts that by 2026, BTC could reach $300,000. But don’t celebrate too early. The market has already priced in rate cut expectations, and risks are lurking. The escalation of political struggles means increased policy uncertainty. The scene where BTC plummeted 50% during the rate cut start in early 2020 could repeat. Investors need to prepare for two scenarios: if the investigation forces the Fed to compromise and accelerate rate cuts, core assets like BTC and ETH could enter a new rally; if conflicts continue to escalate and trigger risk-off selling, it could be an opportunity to buy quality coins on dips. The key is to closely monitor every policy signal and control leverage to avoid being shaken out by volatility. This "political and financial tug-of-war" has just begun. Can central bank independence be maintained? When will the rate cut window truly open? How can crypto assets seize that liquidity dividend? Looking forward to hearing your thoughts.
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Gate 2025 Year-End Community Gala #美国贸易赤字状况# The Federal Reserve Chair Under Investigation, but the Crypto World Is Boiling!
The latest big news: Powell is under criminal investigation, ostensibly over testimony disputes related to the Federal Reserve headquarters renovation project, but everyone can see that behind it is the Trump administration's relentless push for rate cuts. The prosecutor, a long-time ally of Trump, approved the investigation, while Powell openly called it "a blatant attack on the independence of the central bank."
At first glance, it seems like political struggle, but it actually affects the entire financial ecosystem. Why does Trump insist on rate cuts? A simple calculation makes it clear—$37.7 trillion in national debt is overwhelming, and each 1% cut in interest rates can save nearly $400 billion in interest payments. The Fed is steadfastly committed to inflation targets and refuses to compromise. This game directly targets the autonomy of interest rate policy.
For the crypto circle, this is not just watching a show. History has the answer: during the zero-interest-rate cycle from 2020 to 2021, BTC surged 1700%, and ETH skyrocketed 1900%. When liquidity loosens, funds rush into high-risk assets. Standard Chartered Bank even predicts that by 2026, BTC could reach $300,000.
But don’t celebrate too early. The market has already priced in rate cut expectations, and risks are lurking. The escalation of political struggles means increased policy uncertainty. The scene where BTC plummeted 50% during the rate cut start in early 2020 could repeat. Investors need to prepare for two scenarios: if the investigation forces the Fed to compromise and accelerate rate cuts, core assets like BTC and ETH could enter a new rally; if conflicts continue to escalate and trigger risk-off selling, it could be an opportunity to buy quality coins on dips. The key is to closely monitor every policy signal and control leverage to avoid being shaken out by volatility.
This "political and financial tug-of-war" has just begun. Can central bank independence be maintained? When will the rate cut window truly open? How can crypto assets seize that liquidity dividend? Looking forward to hearing your thoughts.