Have you ever wondered why a single political news can cause Bitcoin to plummet instantly?

The operation in August this year clearly illustrates the point. After a certain political figure replaced the Labor Statistics Bureau director under the pretext of "data falsification," Bitcoin directly dropped below $115,000. This is no coincidence. Behind it, there is a logic that most people haven't noticed—politics is quietly rewriting the Federal Reserve's decision-making process, and the crypto market is often the first to sense the change in the wind.

**Is the Federal Reserve truly independent?**

Theoretically, the Federal Reserve is an independent institution that emphasizes professional decision-making. But in practice? Political influence is everywhere. Especially when the White House and the Fed's policy directions clash, political pressure becomes the button to change course. The most typical example was that time—political figures directly named the Fed Chair, demanding his "retirement." Such blatant pressure is enough to force decision-makers to consider political factors more heavily when formulating policies, such as being forced to cut interest rates early to stimulate the economy.

**Three signals to predict what will happen next**

How can we anticipate a shift in the Federal Reserve's policy? I think these points should be closely watched:

**First: Economic data subjected to "political contamination"**

Non-farm payrolls, inflation indices—these are supposed to be hard indicators. Once they are used as political tools, their credibility is compromised. When data is questioned, the Fed may rely more on market feedback rather than official statistics. For the crypto market, this translates directly into one word—uncertainty. Volatility naturally increases.

**Second: "Policy impulsiveness" during election years**

Every election year in the US, the influence of political circles becomes particularly strong. Policies are often hijacked by short-term political goals, and the pressure on the Fed is at its peak.