Many people have a misconception that as long as the Fed listens to Trump and starts aggressively lowering interest rates, the Crypto Assets will enter a rampant bull run. In fact, this view is incorrect.

The reason why the US dollar can maintain its position as the global reserve currency is not solely due to the size of the US economy, but because it has institutional credibility; people believe it will not be arbitrarily manipulated by politics. Once the independence of the Fed is compromised, the first to suffer will not be others, but the US stock market itself, and the credibility of the dollar will also be directly undermined.
Stablecoins in the crypto world, such as USDT and USDC, are fundamentally derivatives of the credit of the US dollar. People are willing to hold them because they believe the US dollar is genuinely redeemable. If the independence of the US dollar is undermined, the foundation of these stablecoins will also be shaken.
Some believe that after Trump intervened with the Fed, the liquidity will be more aggressive, and the US stock market and Crypto Assets could surge wildly. This may be true in the short term, but in the long run, it leads to credit overextension, the US debt cannot be sustained, and the international status of the dollar will be shaken, resulting in nothing but a house of cards built on dollar assets. Those who rely on this kind of logic to fantasize about getting rich often end up losing everything.
If Trump really reaches into the Fed, causing it to lose its independence and become Trump's puppet institution, that would be entirely different in nature; it would undermine the very foundation of the entire American financial system. #Gate广场七夕心意 #谷歌云推出 L1 区块链 GCUL #美商务部拟上链发布经济数据