Recently, Federal Reserve Chair Jerome Powell's situation has indeed become somewhat complicated. Democratic Senators Elizabeth Warren and Richard Blumenthal jointly sent a letter to the Department of Justice, demanding the release of investigation documents related to Powell, directly accusing him of abuse of power. Even more dramatically, Treasury Secretary Janet Yellen also publicly criticized Powell, stating that his bond-buying operations during the pandemic led to huge losses and poor management, and outright suggesting he should step down.

This reflects a deeper power struggle concerning the independence of the Federal Reserve. Powell countered by saying that the real issue is that the Fed insists on independently setting monetary policy based on economic data, rather than being influenced by political pressure. This collision of institutional powers could cause some chaos, which has unsettled the markets.

From market performance, investors have clearly shifted into risk-averse mode. Spot gold prices have historically broken through the $4,800 mark, becoming the most popular safe-haven asset. Meanwhile, Bitcoin, as a risk asset, has experienced a sell-off, once falling below $88,000, with over $1 billion in liquidations across the network within 24 hours.

Regarding the long-term significance for the crypto market, every time the central institutions of the traditional financial system face a crisis of trust, it repeatedly validates Bitcoin’s core principles—decentralization and immutability. In the short term, crypto assets will indeed fluctuate with macro risk sentiment, but from a longer-term perspective, these political and economic uncertainties are quietly building demand for decentralized alternatives. Volatility remains normal; just be mentally prepared.