In the past couple of days, the market has been paying close attention to a key signal—the U.S. Treasury Secretary publicly calling for the Federal Reserve to cut interest rates in order to support the new policy. At first glance, a rate cut seems like good news for cryptocurrencies, but upon closer inspection, there are some issues.

Where is the problem? The Treasury Department directly pressuring the central bank touches on the bottom line of monetary policy independence. Once policies start to become politicized, concerns about inflation prospects and the credibility of the central bank will surface. This has a tangible impact on stability.

From a trading perspective, mainstream cryptocurrencies like ETH, BTC, and BNB may face short-term volatility. Policy uncertainty often damages market sentiment more than the policy itself. What the market needs now are clear policy signals, not power struggles between authorities.

The subsequent developments will need to be closely watched, especially the stance of the Federal Reserve and the market’s re-pricing of inflation expectations. A prudent strategy is particularly important at this stage.