Recently, a major news broke in the crypto circle. The public spat between the U.S. President and the Federal Reserve Chair has directly turned the market upside down. This is not just a war of words between two power figures; it reflects fundamental disagreements over monetary policy, which are profoundly impacting global financial markets, including the direction of the cryptocurrency market.

The trigger was simple: last week, the Federal Reserve announced a 25 basis point rate cut, adjusting the interest rate range to 3.5%-3.75%. This is the third rate cut this year. At first glance, it seems like a positive signal, but a high-ranking official was not convinced. He publicly stated that the rate cut was far from enough and called for a 50 basis point reduction. He even issued a stern warning: U.S. interest rates should be the lowest in the world. Without the support of the U.S. economy, the global financial system cannot stabilize.

Before he finished speaking, the conflict escalated. He began criticizing Fed Chair Jerome Powell, accusing him of slow decision-making, rigid actions, and even sarcastically saying, "This guy only stalls when helping opponents' campaigns." The implication was clear—Powell was deliberately opposing. Still angry, he brought up the cost overruns of the Fed building renovation project, claiming it was evidence of Powell’s mismanagement, and even threatened to sue him. Finally, he threw out a remark: "If he wants to leave, he’ll have to get out immediately," igniting the fire completely.

Why such a fierce confrontation? The reasons are not hard to understand. First, the scale of U.S. national debt has reached alarming levels. Every additional basis point of interest rate costs the government huge amounts in interest payments. For some, rate cuts are not just economic policy but a direct fiscal relief. Second, economic cycles and political schedules are often closely linked. Low interest rates usually stimulate stock market growth and boost consumer confidence, which can serve as part of a "performance record" during a presidential term.

What does this game mean for the crypto market? In the short term, market sentiment will fluctuate wildly due to this uncertainty. But in the long run, two key factors will determine the trend: first, how the Fed ultimately responds to pressure; second, the monetary policy directions of other central banks worldwide. An easy monetary environment generally boosts risk asset valuations, including cryptocurrencies. But if markets start to worry about policy instability, volatility could intensify.

This story will continue to ferment. Policymakers and market participants are closely watching the developments. For crypto investors, the key is to understand the macro forces at play rather than simply chasing short-term emotional swings. Ultimately, the market will price in these uncertainties, and the question is whether you can stay rational through the process.