2025-12-30 06:20:55

The power struggle between the White House and the Federal Reserve is intensifying. Trump has taken a tough stance against Fed Chair Jerome Powell, not only threatening to use his authority to remove him early but also considering initiating legal proceedings on grounds such as "gross misconduct." Although Powell's legal term extends until May 2026, ongoing political pressure has made his position and the Fed's independence quite fragile.

At the core of this conflict are policy disagreements—Trump believes Powell's pace of rate cuts is too slow, increasing borrowing costs for the public. However, the issues go far beyond that. When central bank decisions may face judicial review and political retaliation, the credibility of those decisions and market predictability are severely compromised. The very rules are beginning to shake.

What does this mean for the crypto market? First, the fundamental trust underpinning the traditional financial system is being challenged. Once central bank independence is compromised, the stability of monetary policy becomes questionable. Second, markets will enter a period of high uncertainty driven by political headlines and legal risks. Volatility will become the new normal rather than an exception. Price discovery processes for assets like BTC, DOGE, and others will be deeply affected by this political uncertainty.

From a longer-term perspective, this crisis reinforces an ancient argument: when the guardians of the traditional financial system are breached from within, the narrative of decentralized, censorship-resistant crypto assets becomes more attractive. This is not to say that cryptocurrencies can solve all problems, but in an era of declining central bank credibility and reduced policy predictability, market participants will seek alternative stores of value and trading tools.

In the short term, this political uncertainty will intensify market volatility. In the long run, it may alter the logic of capital allocation. The key question is: when the bastions defending the traditional monetary system are breached from within, how will investors rethink asset allocation?

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MerkleDreamer

· 3h ago

Is the independence of the central bank shattered? Well, now BTC is about to take off. --- It’s already a given that Powell has been sidelined. You all know what the collapse of the rules means, right? --- Traditional finance is self-destructing from within. We've been waiting for this day... The narrative around crypto finally has legitimacy. --- Is volatility the new normal? Oh, this isn’t bad for us at all; opportunities are everywhere. --- Really? Can the Federal Reserve still be so politically hijacked? Then isn’t our BTC even more attractive? --- In the final game of power, the winners will definitely be those who buy DOGE, haha. --- In an era of plunging central bank credibility, you still only hold USD? Bro, you need to catch up on your lessons.

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TokenSherpa

· 3h ago

actually, let me break this down for you — what we're witnessing here fundamentally mirrors historical governance collapse patterns, if you examine the data from previous monetary regime shifts. the fed's institutional credibility is basically the quorum requirement of the entire system, and once that's questioned, everything cascades.

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token_therapist

· 4h ago

Really, the traditional financial system's discourse power is being arbitrarily divided now, it's ridiculous. --- Once the independence of the central bank is compromised, how can we trust these institutional designs? To put it simply, rules are breaking the rules. --- Volatility has become the new normal. For traders, it's both a risk and an opportunity, depending on who reacts faster. --- Speaking of which, isn't this the very reason BTC exists—a store of value that isn't politically hijacked? --- Instead of worrying about what problems cryptocurrency can solve, it's better to see how the traditional system is screwing itself up—ironic, isn't it? --- The logic of short-term volatility and long-term allocation has changed. Where will capital flow? That's the most interesting part. --- If Powell really gets pushed out, the signal will be too strong, and the market will directly shift towards decentralized assets. --- It feels like we're in a trust crisis now. Whoever can stabilize the central bank's position wins.

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CafeMinor

· 4h ago

Now it's settled, the Federal Reserve is also being hijacked by politics. The story of Bitcoin has never been about technology, but about a crisis of trust. --- Central bank independence is gone. How am I supposed to trust this system... This wave of BTC really makes sense. --- Wait, with such high political risk, it's no wonder funds are flowing into crypto. --- Talking about anti-censorship and decentralization, at the end of the day, it's just traditional finance screwing itself over. This is a demand driven by necessity. --- Is volatility becoming the new normal? Should I adjust my positions? --- The Federal Reserve has been played out; the next step depends on how other central banks follow suit. --- The phrase "traditional financial fortress collapsing from within" is spot on. I should have seen this coming long ago. --- Powell can't withstand political pressure no matter how capable he is. Poor guy. --- So now you understand why I went all in five years ago. --- Shaking rules = opportunities arise. This logic is simple and straightforward, but it's true.

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AirdropAnxiety

· 4h ago

The Federal Reserve's independence has collapsed. Is BTC really about to take off... The central bank's credit bankruptcy is our opportunity.

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FortuneTeller42

· 4h ago

The independence of the central bank has collapsed, now BTC can really serve as a safe haven. --- Powell is being grilled over the fire; political risks are entering monetary policy... We are in a chaotic era. --- No way, the rules themselves are starting to move? Then not holding some crypto assets would be foolish. --- Traditional finance is rotting from within; the decentralized narrative now sounds less虚 now. --- Is volatility becoming the new normal? Fine, I’ll look for opportunities in high volatility. --- This is why we went all in long ago—the moment of central bank信用破产 has arrived. --- The key is this—how investors reallocate... they already have a sense of it. --- The metaphor of the fortress collapsing from within is brilliant; crypto doesn’t need a fortress at all. --- Short-term chaos, long-term gains—it's time to bottom fish. --- Trump vs. Powell—beneficiaries are the holders, simple and straightforward.

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GasSavingMaster

· 4h ago

Damn, if the central bank can be played around with, what can we retail investors still believe in? --- This is the real reason for BTC's existence. The rules are incomplete, so we can only rely on the code to speak. --- Is volatility the new normal? I'm already used to operating my account this way, and it's actually more profitable. --- Powell really got caught this time. Poor guy, rules are just decorations for the big shots. --- No, wait... if the independence of the central bank can't be maintained, then can I still hold my US dollars? --- Where there's internal conflict, there's opportunity. I need to increase my position today. --- In the end, we are the ones who get hurt the most from playing around. Why is that? --- Wait, will Doge rise because of Trump's issue? Anyway, politics are so chaotic now, might as well go all in. --- Trust is gone, and capital has to find a new home. This logic makes sense.

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