Bitcoin sitting pretty with a +5% green candle while the altcoin market got absolutely hammered—down 40%. What's really going on here? This kind of divergence tells you something. When BTC pumps but alts crater, it usually means capital is rotating hard into the perceived safer bet. Investors pulling liquidity from riskier plays and parking it in the king of crypto. Classic risk-off behavior in action. A few things typically drive this: First, macro headwinds hit alts harder. They're the leverage plays, the speculative bets. When uncertainty creeps in, people dump those first. Second, if there's profit-taking on BTC gains, sure—but that dry powder often doesn't rush straight back into altcoins. It sits on sidelines or moves into stablecoins. Third—and this matters—institutional money usually flows to Bitcoin first. Alts get the retail wave later, if at all. The 45% gap between BTC and alts? That's worth watching. Could mean we're entering a consolidation phase where only the blue chips hold value. Or it could be the setup before alts make their own recovery run. History says alts tend to lag but eventually catch up when sentiment shifts.

Recently, the crypto community has been paying close attention to an unavoidable topic—the tug-of-war over monetary policy in U.S. politics. Current President Trump has been pressuring Federal Reserve Chair Jerome Powell, and this political and economic game could directly influence the direction of the entire crypto market. Let's look at Trump's actions first. He publicly threatened to sue Powell, citing the Fed's $2.5 billion renovation of its headquarters as "gross misconduct." But the real core demand is—lower interest rates. Trump explicitly asked the Fed to cut rates to around 1%, even saying "those who don't cut rates according to my plan don't deserve to be chairmen." This sounds quite aggressive, but behind it reflects a desire for an easy monetary environment. What is the Fed's current stance? The interest rate is now held between 3.5% and 3.75%. Although it has been cut three times this year, recent meeting signals suggest only one more cut might happen in 2025. Powell's term as chair lasts until May 2026, and the board members' terms extend to 2028, so the policy direction in the short term remains quite uncertain. For the crypto world, this situation is quite complex. If rate cuts are truly implemented, it could be a positive signal. Loose liquidity tends to push funds toward high-risk, high-reward assets, making the crypto market a prime target for hot money, which could ignite a bull market. But the problem is, political interference and the resulting uncertainty could also bring another risk—market volatility might spike sharply. Historically, Bitcoin has experienced monthly declines of over 30% due to repeated rate cut expectations, triggering mass liquidations. Structurally, altcoins and application-based projects that are sensitive to liquidity might benefit from a loose cycle. However, tokens lacking substantial backing are at greater risk, with dangers amplified. A deeper hidden risk is that if the Fed's independence is truly shaken, long-term market uncertainty will only increase, which is bad news for any investor. The game between policy and money supply has always triggered significant market swings; sudden liquidity tightening or failed expectations can be devastating. Currently, the key variable in the market is Trump's pressure on the Fed. His next moves could directly determine where funds flow and how the crypto market develops.

Japanese-listed Metaplanet has strengthened its Bitcoin reserves in Q4, purchasing 4,279 BTC at approximately $451 million. The company now holds 35,102 BTC in total, positioning itself strategically within the institutional custody landscape. This accumulation represents a significant milestone as Metaplanet tracks toward its ambitious 2027 target of 210,000 BTC holdings. The aggressive acquisition strategy reflects institutional confidence in Bitcoin's long-term value proposition, while the scale of this position underscores how major entities are reshaping their balance sheets through digital asset allocation. Such large-scale purchases continue to influence market sentiment and custody dynamics within the broader cryptocurrency ecosystem.