Trump Pressures Powell: A New Round of Long-Short Meat Grinder Begins!
Today, Trump lashed out at Federal Reserve Chairman Powell during a cabinet meeting, accusing him of "misleading Congress" regarding the Fed headquarters renovation project, demanding that he "resign immediately" and be replaced to push for interest rate cuts. He angrily criticized Powell for "complaining like a child about nonexistent inflation," shouting, "Cut interest rates, right now!" Powell, however, refused to lower interest rates, citing "Trump's tariff policy driving up inflation," leading to a deadlock between the two.
Three Major Impacts on the Cryptocurrency Market
1. Expectations for Rate Cuts Rise, Capital Flows into the Crypto Market
Historical Script Repeats: In April, when Trump first hinted at firing Powell, Bitcoin soared to $93,000 within 24 hours. This latest palace coup rhetoric may reignite market expectations for liquidity easing, pushing risk assets like BTC and ETH higher.
Key Monitoring Point: The Federal Reserve's interest rate decision on July 29 is a major event. If Powell withstands the pressure and does not cut rates, watch out for a "hawkish surprise" that could trigger a flash crash—similar to April's remarks of "not in a hurry to cut rates" causing a 5% drop in BTC in a single day.
2. Long-term Hidden Risks: Collapse of Federal Reserve Independence, Strengthening of Bitcoin as 'Digital Gold'
Fiat Currency Credit Crisis: If Trump forcibly intervenes in central bank decisions, the damage to the dollar's credit will highlight Bitcoin's censorship-resistant properties. Historical Evidence: After Nixon abolished the gold standard in 1971, gold surged, and Bitcoin may replicate this logic.
Policy Division on Display: Trump advocates for establishing a "National Bitcoin Strategic Reserve," while Powell firmly opposes the Fed holding BTC. This conflict could lead to severe market volatility, but in the long run, political intervention may instead solidify BTC's status as a safe haven.
3. Altcoin Opportunities: Benefiting from De-dollarization
Cross-border Payments and Privacy Coins: Trump's policies exacerbate global anxiety over "de-dollarization," potentially attracting capital to cross-border payment tokens like XRP and privacy coins.
Covert Operations by Political Forces: Projects under the Trump family, such as World Liberty, have reportedly bottomed out on altcoins after Powell's remarks, indicating a linkage between policy conflicts and market movements.
