Powell's Speech Approaches, Crypto Industry Closely Monitors the Federal Reserve's "Independence" Game
On July 22, Federal Reserve Chairman Powell will attend a banking regulatory meeting and deliver a speech at 20:30. Due to recent pressure from Trump and Republican lawmakers regarding the overspending on the Federal Reserve headquarters renovation, this statement will have a far-reaching impact on the financial markets.
From the perspective of the crypto industry, the core focus is on the Federal Reserve's statement on "independence." If Powell emphasizes independence, it will strengthen the market's expectation that monetary policy is free from political interference, stabilizing expectations for dollar liquidity and potentially suppressing risk appetite for crypto assets in the short term;
If the attitude is ambiguous, concerns about political interference may rise, which could trigger demand for dollar credit hedging, presenting volatility opportunities for safe-haven assets like Bitcoin.
Moreover, the controversy over the Federal Reserve headquarters renovation exposes issues of regulatory transparency, contrasting with the crypto industry's long-standing demands for compliance and transparency. The market must be wary of the policy uncertainties triggered by political games, as crypto assets, being sensitive to traditional financial regulation, may experience increased volatility or capital migration in line with the narrative of the Federal Reserve's independence. Closely tracking the details of the statements is crucial for predicting the short-term trends in the crypto market.
