Recently, new developments have emerged around the political game surrounding the Federal Reserve Chair. The disagreements between Trump and the Federal Reserve have escalated from public controversy to formal legal proceedings—challenging the current Chair on charges such as "gross misconduct." This power struggle over the independence of the central bank is profoundly affecting market expectations for future monetary policy.

**Liquidity Battle Under Policy Pressure**

Trump's policy goals are clear: push for faster and more aggressive rate cuts. If legal pressure results in tangible impacts, forcing changes in the Fed leadership or policy adjustments, it could lead to a rate cut cycle that is faster and more intense than current market expectations. The market is already pricing in this scenario—if interest rates eventually plunge to 1% or even lower, the liquidity released will be substantial.

**Dual Short-term and Long-term Impacts**

The power struggle inevitably brings significant uncertainty. Recent political factors may suppress the performance of risk assets and increase market volatility, making investors' decision-making more challenging.

However, from a longer-term perspective, such events are fundamentally changing people's confidence in the traditional financial system. When the independence of the central bank is directly challenged by political forces, perceptions of the creditworthiness of fiat currencies and traditional financial assets are likely to be reevaluated. Against this backdrop, decentralized, censorship-resistant digital assets gain new appeal—redefining their strategic position as tools for hedging risks and preventing financial censorship.

**Potential Shift in Capital Flows**

When cheap liquidity coincides with doubts about the credibility of the traditional system, the framework for asset allocation will change. This deep confidence shift could become a key catalyst for a new round of asset price increases. The crypto market is waiting for such a window of opportunity.