2026-01-13 05:08:14

Jerome Powell just pushed back hard against the DOJ probe, framing it as overreach into the Fed's independence. Here's the thing—when central banks feel political pressure, markets react. The crypto market watches Fed policy moves like a hawk, because monetary decisions feed directly into capital flows and risk appetite.

Powell's stance signals the Fed wants breathing room to make autonomous calls on interest rates and policy direction. For traders holding BTC, ETH, or other alts, this matters. Tighter central bank control or external interference could shift the Fed's ability to respond flexibly to economic shocks, which ultimately affects how aggressive they can be with rate cuts or stimulus.

The tension here is real: if the DOJ can weaponize oversight against Fed decisions, it muddles the institution's credibility. Markets hate uncertainty about who's really calling the shots on monetary policy. Keep an eye on how this plays out—it could reshape rate expectations and, by extension, risk asset demand.

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ETH7,6%

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CryptoGoldmine

· 17h ago

In fact, this matter is essentially about vying for discourse power. Once the Fed's independence is eroded, the arbitrage space will significantly shrink. From the perspective of computational power networks, uncertainty is the biggest cost. --- Powell's recent move signals that a stable policy expectation is more valuable than short-term stimulus. My mining ROI cycle has recently lengthened, and it is this uncertainty that is at play. --- Laughing, the most direct victims of political games are those traders who rely on liquidity. Market pricing is originally based on the credibility of the Fed. Once this foundation is shaken, even the technical aspects of BTC become irrelevant. --- Instead of worrying about what the DOJ is thinking, it's better to focus on the policy direction of the next difficulty adjustment cycle of the Federal Reserve. That is the key to determining capital flow. --- Under this power struggle, those holding stable assets sleep even more soundly. It can only be said that political risk premiums are here.

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WinterWarmthCat

· 17h ago

Powell's move this time still depends on what happens next. Once political interference in the central bank's independence starts, the coin price is likely to fluctuate accordingly.

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PermabullPete

· 17h ago

Powell is indeed playing a solo game this time, but can the Fed really withstand political pressure... It seems that in the end, compromise is still necessary. --- Not gonna lie, this is good news for the crypto world. If the Fed is restrained, it might not be able to mess around with interest rates, and there might even be a chance to catch a breath. --- Playing this game again. Central bank independence is something everyone wants, but when it comes to critical moments, they still have to listen... The Federal Reserve is no exception. --- The biggest fear in the market is not knowing who is steering the ship. If the DOJ wins this time, there could be volatility in cryptocurrencies. --- Wait, is Powell trying to leave himself room to maneuver or is he really doing it for the Fed itself... Is there a difference between the two? --- Basically, it's about fighting for the right to speak. The market is most sensitive to this kind of political tug-of-war, and crypto prices swing accordingly. --- If the independence of the Fed breaks down, it would be worse than a direct rate hike because you wouldn't know what the next step is. --- Honestly, I'm more concerned about whether this will accelerate the de-dollarization process in some countries...

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WhaleMinion

· 17h ago

Powell's recent moves feel a bit like a comeback, political interference is really the biggest poison in the crypto world. If the DOJ really messes up the Fed's independence, our ups and downs will become even more unpredictable. Basically, it all depends on who has the stronger hand. This kind of uncertainty is the most annoying, even more uncomfortable than a bear market... really. Whoever is in power makes the decisions, and retail investors are always the last to buy in. Powell's effort to protect independence is pretty good; at least the market can still have some stable expectations.

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