Recently, the market has been buzzing about a topic: whether political pressure on the Federal Reserve Chair nomination and policy direction will truly change the course of monetary policy.

The logic seems quite clear. If the new Federal Reserve Chair leans toward cutting interest rates, dollar liquidity will loosen. In a loose environment, funds tend to chase high-yield and high-volatility assets—cryptocurrencies fit this description perfectly. Once a rate cut expectation forms, investors may front-run to hedge against dollar depreciation risks.

But here’s a key issue: right now, it’s just political rhetoric; the policy itself has not been implemented. Markets often "price in expectations in advance," reacting early to potential changes. The result? Increased volatility and amplified risks.

What should we really pay attention to? First, actual economic data; second, the Federal Reserve’s official decisions. Relying on one or two political statements to adjust investment strategies can easily be driven by emotions. From a longer-term perspective, the fundamental factors that determine market trends are the direction of monetary policy, changes in the regulatory environment, and the development of applications for crypto assets themselves.