2025-12-31 02:26:15

🔥 The eye of the storm is here. The confrontation between Trump and the Federal Reserve has escalated completely, and the valve of global liquidity is being turned madly. All eyes are focused on one number: 1%.

The former president is no longer just talking. He harshly criticizes current Chair Powell as "foolish," publicly states that he "wants to fire" the nominee he once appointed, and even considers filing a lawsuit over headquarters renovations. The core goal is only one: to force the Fed to cut interest rates to his envisioned 1%.

But the independence of the Federal Reserve has become a firewall. Powell has repeatedly emphasized that decisions are "not influenced by politics," and legally, the president cannot remove him without cause. Internal disagreements are obvious; just in December, the rate was lowered by a narrow margin to 3.50%-3.75%, still a world apart from the 1% target. This power struggle has become the biggest unknown in the global markets by 2026.

The crypto world is sitting on a powder keg. The outcome of this game will directly determine where the massive liquidity flows. If political pressure succeeds, aggressive rate cuts could trigger a liquidity frenzy. Conversely, any move to undermine the Fed's independence could trigger a dollar credit crisis and market panic, causing indiscriminate damage to risk assets. The lessons of history are right in front of us: in 2025, just due to fluctuations in rate cut expectations and tariff threats, Bitcoin plummeted over 5% in a single day, causing tens of thousands of traders to be liquidated.

The crypto market is no longer an outsider. It is deeply intertwined with traditional finance and global policies, becoming an "asset with political premiums." In 2025, Bitcoin surged to a historic high of $126,000 driven by institutional push, then sharply retreated — a clear signal: a more complex and dangerous game is about to begin.

What do you think? Can Trump's "1% fantasy" come true? Is it the next myth of wealth or the moment of liquidation? Share your thoughts in the comments.

BTC1.14%

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IntrovertMetaverse

· 4h ago

The part about liquidation really hits hard; my friend was wiped out at that time. --- No matter how liquidity flows, someone has to take the other side. In the end, it's still the retail investors who get harvested. --- 1%? Wake up. The wall of political independence is even harder than Bitcoin; it can't be broken. --- Can't bet on either side. Let's just wait and watch the show. Anyway, the ones losing money are definitely retail investors. --- Is the dollar credit crisis a bit exaggerated? Has the Federal Reserve ever truly been shaken in history? --- Institutions started to run when Bitcoin hit $126,000, and we're still here taking the hits. Truly incredible. --- Instead of studying Trump's psychology, it's better to focus on your own stop-loss line. Living well is the most important thing these days. --- Assets with political premiums... sound just like a casino. No one knows when it will collapse.

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LootboxPhobia

· 4h ago

I really can't come up with a solution. How can the crypto world survive with interest rates cut to 1%?

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FloorPriceWatcher

· 4h ago

1% has truly been achieved, and the crypto world is taking off. If the Federal Reserve is actually destabilized, it would be even more terrifying.

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GweiWatcher

· 4h ago

Honestly, this 1% is simply impossible. If the Federal Reserve truly capitulates, the crypto world will really explode. --- It's both political premium and liquidity; in plain terms, it's a gamble on whether politicians can break through the red line of the system. I bet they can't. --- Ha, Trump wants to cut interest rates to 1%? Unless he can remove the words "independence" from the law, it's just talk. --- Just look at the crash last May when it dropped 5%; any policy uncertainty can cause tens of thousands of people to be liquidated. That's the most terrifying part. --- Instead of guessing whether he can force a palace coup, it's better to watch whether the dollar's credit will collapse first—that's the real powder keg. --- I think the probability of a liquidation moment is actually higher. Once market sentiment reverses, no one can escape. --- In my opinion, Bitcoin's drop from 126,000 has already told us the answer. Let's keep waiting for the next revelation.

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BuyHighSellLow

· 4h ago

I really can't hold back anymore. Trump and Powell, this pair of rivals, the crypto world has to pay for their show. Political betting, we're just the chips. Is it a rate cut frenzy or a dollar collapse? Choose one, I bet Bitcoin will drop even more. 1% is just a joke, it's still a chasm away. I just want to know when I can buy the dip, always causing a fuss. This time really unpredictable, feels like a blow-up is coming. Whoever holds the liquidity valve, that's where we run to. So, the institutions finish squeezing retail investors, then it's the end of the cycle. It's a rollercoaster, just don't invest your money and you'll be fine.

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BoredWatcher

· 4h ago

Honestly, I found this farce quite amusing. Is Trump really treating the Federal Reserve like a company to manage? Lower to 1%? Dream on. The Federal Reserve won't cooperate that easily. Instead of obsessing over this, it's better to think about how to preserve your coins. With such volatility, who can stay calm? Powell might really have to go all out this time, after all, it concerns independence. But who knows, politics run deep. I just want to know if the crypto market will experience another single-day crash next. Every time, someone gets liquidated—such a bloody lesson. 1% is a dream; over 3% is probably still a stretch. Anyway, I don't think Trump will make it. This is political premium. The crypto world can't escape this mess—so troublesome. The liquidity frenzy sounds good, but the cost is heavy. It might even cause problems for the dollar. Just watch, the show in 2026 will definitely be more exciting than in 2025, with even more tension.

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