2025-12-25 01:22:40

Although the Federal Reserve has systematically cut interest rates by 25 basis points, the market has sensed something different. The dot plot indicates that the pace of rate cuts in 2026 may slow down, which is interpreted as a hawkish signal, causing investor sentiment to tighten immediately.

Adding insult to injury, Trump recently criticized the Federal Reserve for overspending $2.5 billion on the building renovation project, directly targeting the Fed's independent decision-making space. This is not just a budget dispute but also reflects subtle pressure from the White House on monetary policy. As Powell's term approaches in May 2026, this political pressure is bound to influence future policy directions.

What is the result? U.S. Treasury yields have soared to 4.2%, and the market is testing the 4.5% level. In the long run, the combination of inflation expectations and political uncertainty has become the main driver of bond market volatility.

In such macro tug-of-war, liquidity is being squeezed to the limit. Many investors are turning their attention to consensus-supported safe-haven assets, seeking an emotional outlet. Bitcoin, as the ultimate safe-haven asset, often attracts incremental capital in this environment.

Is this round of "political drama" an accelerator for a bull market or a turning point? The market is still voting with its actions.

BTC0,29%

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BearMarketSunriser

· 2025-12-28 00:51

Hawkish signals are out, and the bond market has started to soar. This pace really can't be sustained... --- Is Trump coming back to mess with the Federal Reserve? It feels like political interference in monetary policy is becoming more blatant, and Powell is under immense pressure. --- Liquidity is tightening so aggressively, why not rush into safe-haven assets? Bitcoin is about to take off. --- 4.2% isn't the end? Is the bond market aiming for 4.5%? That's a bit scary, really. --- So is it an acceleration or a turning point? Good question, the market itself hasn't figured it out yet. --- Inflation expectations combined with political uncertainty—oh my, who dares to hold heavy positions in this environment? --- Wait, can a $2.5 billion overspend at the Federal Reserve building be an excuse for monetary policy? That logic is a bit absurd... --- The rate cut of 25 basis points immediately turned hawkish once the dot plot was released. The market reacts really quickly. --- Political drama is getting ridiculous, and the crypto circle has instead become an outlet for emotions—ironic. --- Will the pace of rate cuts slow down in 2026? Then we traders need to adjust our strategies in advance.

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rekt_but_not_broke

· 2025-12-27 17:17

When the hawkish dot plot is released, the bond market soars directly. This rhythm is quite intense. Trump using the budget as leverage to confront the Federal Reserve? Truly intense, political pressure is directly wrapped into rate cuts. Liquidity is so tight, could Bitcoin have a chance? That's interesting. Let's see how Powell gets through 2026; it will be even more explosive then. The bond market hitting 4.5% will definitely impact the crypto world; already waiting for signals. U.S. Treasury yields are rising quite aggressively, it feels like Bitcoin is about to go up. Political interference in monetary policy, with this combination of tactics, retail investors are really squeezed to death. What’s hidden in the dot plot is actually a compromise, but the market can’t quite pick up on this nuance. Liquidity tightening + political uncertainty, this might be the last safe haven window in the crypto space. When the hawkish signals appear, how many people are still bottom-fishing in bonds?

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GateUser-00be86fc

· 2025-12-26 07:56

Damn, political players are meddling. Is the Federal Reserve about to be sidelined? --- Powell is under immense pressure. How long can he hold out until 2026... --- Bonds are crashing. I just want to know how much this wave of BTC can rise. --- U.S. debt at 4.2%. This is basically an invitation to Bitcoin. --- This is ridiculous. Trump is talking about the budget, but he's actually threatening. --- In simple terms, when liquidity tightens, money flows into safe-haven assets. The hawkish stance in this game has already been set. --- Wait, does this mean the interest rate cut cycle is really coming to an end? Feeling a bit anxious. --- Political uncertainty increases debt costs, and Bitcoin is benefiting from this wave of dividends. The cyclical pattern is clear. --- The independence of the Federal Reserve is being eroded. This is a big problem. --- If 4.5% really breaks, the entire asset allocation will need a major reshuffle.

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LiquidationWatcher

· 2025-12-25 01:50

Hawkish shift + political pressure, this combination has shaken the bond market badly. BTC should take off now, right?

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WagmiWarrior

· 2025-12-25 01:46

Political pressure + bond market collapse, turns out you still have to rely on Bitcoin.

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StableNomad

· 2025-12-25 01:39

honestly 4.2% yield already screaming "buy the dip" territory... reminds me of UST in May when everyone thought they found the ultimate stable play. statistically speaking, whenever the fed gets politically pressured like this, volatility spikes but so does the risk-reward ratio. not financial advice but the smart money is definitely rotating rn.

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