The Federal Reserve is trapped in an epic dilemma! The crypto world is dragged into the eye of the storm: Bitcoin skyrocketed 37% in March, USDT circulation broke 1.2 trillion, and traditional finance is colliding head-on with the digital economy

1. Tariff Shock: Businesses Halt, Currency Prices Plummet

Trump's tariff policy is erratic; if a 50% tariff on steel and aluminum is implemented, manufacturing costs will surge by 12%, pushing inflation to 3.5%. On the day that April commodity prices surged by 0.5%, Bitcoin plummeted by 8.37%, and USDT experienced record outflows in a single day, with tariff news causing Bitcoin's volatility to soar to 150%.

2. Fiscal Mismanagement: Central Bank Buys Currency, Price Takes a Roller Coaster Ride

Congress approved $3.2 trillion for infrastructure and $2.1 trillion in welfare cuts simultaneously, while the White House requested the Federal Reserve to buy $50 billion worth of Bitcoin as reserves. This news caused the price to rise by 10% within 24 hours before crashing by 12%. Market expectations for interest rate cuts in 2025 were slashed from 75 basis points to 50 basis points.

3. Data Disruption: High Employment, Confidence Collapse

In May, non-farm payrolls added 320,000 jobs, but the consumer confidence index fell to a five-year low. Under the impact of AI, USDT issued an additional $5 billion in April, reflecting a surge in demand for stablecoins amid a crisis of trust in fiat currency.

4. Technical Flood: Policy Failure, Currency Market Out of Control

USDT circulation exceeded 1.2 trillion (reaching 3.7% of the Federal Reserve's M2), with AI high-frequency trading causing a 2% one-day drop in Treasury futures in March, triggering $15 billion in forced liquidations. Signals of a Federal Reserve interest rate cut could trigger panic, while expectations of rate hikes could instead stimulate Bitcoin's surge.

Powell's Dilemma: The Crypto World Becomes a Policy Barometer

Maintaining interest rates could lead to a $1.2 trillion U.S. debt default in June; cutting rates would fuel inflation. The May meeting discussed adjusting the inflation target, and Bitcoin fell from $100,000 to $86,000 as expectations for rate cuts cooled.

In this collision between traditional finance and the digital economy, can the Federal Reserve find a way out? Let's discuss in the comments, share with friends in the crypto world, and like and follow for more key insights! #美联储何时降息？