FEDERAL RESERVE 🚨 The president overseeing the United States Federal Housing Reserve, Fannie Mae and Freddie Mac, is calling on Congress to investigate the Federal Reserve Chairman, Jerome Powell.

⚖️ KEY CONTEXT

Jerome Powell is the most influential figure in U.S. monetary policy.

A formal investigation could call his leadership at the Fed into question.

This is not just a political criticism: he is accused of lying to Congress, which is serious and could be grounds for impeachment if proven.

This comes at a time when there are already tensions over interest rate decisions, inflation, elections, and the credibility of the financial system.

📉 RISKS FOR TRADITIONAL MARKETS

Doubt about the Fed's independence → fear in institutional markets.

Increased volatility in future interest rates → affects the predictability of the dollar, bonds, and stocks.

Loss of confidence → institutions may seek refuge outside the traditional system.

🟢 And for the crypto market?

🔹 1. Narrative of refuge and institutional distrust

$BTC y $ETH position themselves as assets beyond state control, which is very attractive when institutions show cracks.

If Congress begins to seriously debate Powell's suitability, a narrative is activated:

"If the Fed is not stable, what can we trust?"

Result: flow towards decentralized assets.

📌 Beneficiaries: BTC, ETH, on-chain backed stablecoins, and tokens linked to privacy or financial sovereignty.

🔹 2. Increased pressure for the Fed to pause or cut rates

If the scandal escalates, Powell would have less authority or legitimacy to continue raising rates.

This favors:

Decreases in the dollar (DXY)

Rebound in risk assets

Strong boost to crypto, especially if the SPY also responds positively

🔹 3. Pro-crypto allies like Cynthia Lummis gain weight

Lummis, directly cited in the complaint, is pro-#BTC and part of the block pushing for clear regulations for crypto.

Stay tuned for new information to adjust the overall outlook. 🫡$SOL