Many people treat recent news as political gossip after-dinner entertainment, but the impact of this event on the crypto market goes far beyond expectations.

On the surface, it appears to be a change in the power hierarchy. But what is the reality? It touches on the core hub of global capital flow—the Federal Reserve. The Federal Reserve is not just an institution that adjusts interest rates; it controls the leading global liquidity. Once there is an unconventional power shift in this position, the consequences are not just policy adjustments but a direct impact on the stability of the entire financial system.

The key point here is: the market's greatest fear has never been whether interest rates go up or down. The real fear comes from—uncertainty.

Currently, the certainty surrounding the Federal Reserve is being re-evaluated. The tenure of leadership, policy independence, and policy continuity—these once solid foundations—are now being pushed onto the political bargaining table. Once this foundation loosens, how will institutional investors react? Not rushing in to buy the dip, nor increasing positions, but—first withdrawing, first avoiding risks, first observing.

The uniqueness of the crypto market is that it itself amplifies emotions and leverage. When mainstream funds collectively enter risk-averse mode, market volatility will spike rapidly. Original liquidity may evaporate instantly, and the price discovery mechanism may fail, making any analysis at this point seem pale in comparison.

So the key question is: who will be the new Federal Reserve leader? Will the policy stance shift? How long will it take for the market to reprice reasonably? Every one of these questions could trigger a severe fluctuation in the crypto market. Don’t be naive to think that a leadership change equals looser liquidity. The chaos during the power transition period is often more destructive than any clear direction.