The recent power dynamics at the Federal Reserve have undergone a dramatic shift. Originally, the market expected Powell to step down as Chair in May, but he decided to remain as a Board member until 2028. This move has made the situation unusually complex, potentially creating an unprecedented system of checks and balances within the Fed.

The Trump camp has been continuously pushing their own candidates into the Fed but has faced strong resistance. Powell even released a video statement, asserting that "criminal threats will not change the central bank's independent decision-making." The Department of Justice has already intervened, with subpoenas flying, turning this power struggle from behind the scenes into a public spectacle.

The current situation is as follows: With Powell remaining as a Board member, a powerful internal check is forming within the Fed. The two new Board nominees proposed by Trump have been blocked in Congress, with several lawmakers openly stating, "We won't vote until the investigation is clear." More critically, the Supreme Court is about to rule on a case involving the boundaries of the Fed's authority, which could redefine the foundation of the central bank's independence.

For the crypto market, this power struggle directly impacts the Fed's policy direction. Internal divisions mean that policy forecasts become much more uncertain, and uncertainty is what markets hate most. Rate decisions, QT balance sheet reduction, and even future rate cuts could all be affected by this internal conflict. In the short term, this uncertainty is likely to increase market volatility.

For investors looking to bottom fish or hold positions during this cycle, it is advisable to prioritize risk management. At the same time, closely monitor the developments of this central bank power struggle—its trajectory could shake market sentiment more than any single economic data point.