2026-01-13 03:22:33

Things have heated up in Washington these days. The Department of Justice's investigation into the Federal Reserve appears to be a routine audit related to building renovations on the surface, but anyone can see the real underlying struggle.

The key lies in the timing and context. Trump has been dissatisfied with the pace of rate cuts, and Powell previously blamed the slow rate cuts publicly on tariff policies, effectively slapping the president in the face. Now, the DOJ's subpoena arrives right at this critical juncture at the Fed headquarters. This is no coincidence; it’s a display of power.

The most unsettling part is the market’s reaction. It’s not the investigation itself that causes fear, but the expectation that "Powell might be forced to resign." If this becomes reality, the current interest rate cut trajectory that everyone is betting on will be completely rewritten. If the new chair is more willing to bow to political pressure, "violent rate cuts" could shift from market rumors to actual policy. That’s when liquidity will truly flood out like a dam breaking.

In the short term, any news involving high-level instability will trigger sell-offs and panic. In the long term, if the Fed’s independence is weakened, and policy shifts from data-driven to politically driven, the liquidity environment in crypto markets will undergo drastic restructuring. This is not just about interest rates; it’s about the entire trust structure of the financial system.

Right now, it’s all about whether Powell can hold onto his chair. If he can’t, the next wave of market volatility could be more intense than most expect.

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GateUser-9ad11037

· 01-16 00:23

If a violent rate cut actually happens, we retail investors will be the real winners. Powell's position is becoming increasingly awkward to sit in; honestly, I feel a bit sympathetic for him. If this wave of liquidity floodgates opens, the altcoin season will start immediately. Don't regret missing the boat then. Short-term panic selling is just retail investors, but in the long run, the collapse of the Federal Reserve's independence could be a big opportunity. Once political pressure truly dominates policy, the market will no longer trust the data, only power struggles—it's laughable. The display of power muscles is so obvious; it would be absurd if the market doesn't rebound. If Powell can't stabilize things again, it would really be the end of the world. Now it's just a matter of who blinks first.

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NonFungibleDegen

· 01-15 22:29

ngl powell getting subpoenaed is probably nothing but also like... violent rate cuts would absolutely unhinged the liquidity situation ser, we might actually moon this cycle if he gets replaced lmao

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AirdropHunter007

· 01-15 21:23

If Powell really messes up, those of us holding coins better hold steady. A sudden aggressive rate cut would boost liquidity and make things interesting.

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MidnightSeller

· 01-13 15:09

If Powell is truly pushed out, the flood of liquidity will really come, and no one can predict how high the coin prices can fly. Violent rate cuts are the way to go; the politically driven Federal Reserve actually gives us an opportunity. But on the other hand, without independence, the entire system's trust is gone, which is the most frightening part. Power muscle show, and the subpoena arriving just at this time—it's no coincidence that no one believes. In the short term, there will be chaos, but in the long run, this might not be a bad thing for crypto—liquidity environment rewriting. The key still depends on whether Powell's chair is stable; if it stabilizes the market, it might ease, but if not, then it's really time to re-bet.

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TestnetScholar

· 01-13 03:50

The term "violent rate cut" really gets me fired up. If they really start flooding the market, how will the crypto world handle it? If Powell can't hold his ground, our wallets are going to be in trouble. That logic makes sense. The display of power and muscle is so obvious, does the market dare not follow? Once liquidity leaks out, it's really going to take off. Basically, it's a gamble on how long the Federal Reserve can maintain its independence. If it loses independence, we're in trouble. This time, it's a clear provocation. The Department of Justice's subpoena is basically calling out Trump. That move was quite strategic.

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SorryRugPulled

· 01-13 03:49

Powell is really going to be under fire this time. If the aggressive rate cuts come true, we will have to recalculate our contracts.

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AirdropHunter007

· 01-13 03:28

If Powell really gets ousted, our current rate cut cycle will have to be recalculated. --- Basically, it's politics interfering with the economy. The layer of independence of the Federal Reserve is about to be broken, and only then will liquidity truly take off. --- So right now, it's a gamble whether Powell can hold steady? Seems like this guy is under a lot of pressure. --- If a violent rate cut actually happens, crypto will be excited, but the prerequisite is that the market must first experience a wave of intense volatility. --- The display of power muscles is becoming a bit obvious, and the timing of the Department of Justice subpoena is just too perfect. --- Instead of guessing, it's better to watch the trend. Next week's data and public opinion will be the key. --- If the rate cut curve is rewritten, all current betting strategies will need to be adjusted. That’s the most painful part.

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LiquidationAlert

· 01-13 03:28

If a violent rate cut becomes a reality, liquidity flooding will truly arrive, and then the crypto world will be a carnival... --- Powell's chair is becoming increasingly unstable, and the power game is escalating... --- The independence of the Federal Reserve has collapsed, and policies have turned into political games. How can the coin prices not explode... --- The subpoena was too cleverly delivered; this is a naked power struggle. Whoever loses also loses liquidity... --- The key is not the investigation itself, but once Powell is pushed out, successors will have to obediently cut rates, and the market will be truly troubled... --- Once the trust structure collapses, this wave of volatility could far exceed expectations, so be prepared to cut losses... --- If the new chair is more obedient, it will truly be the era of unlimited money printing. Time to stock up on coins... --- Short-term panic, long-term carnival? It all depends on whether Powell can withstand this wave of pressure... --- The Federal Reserve has become a political tool, and the credibility of the financial system has unraveled. Crypto has instead become a safe haven...

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RugDocDetective

· 01-13 03:25

If Powell really crashes, the flood of rate cuts will come suddenly, and that's when the crypto world will truly celebrate.

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FromMinerToFarmer

· 01-13 03:23

Wait, if Powell really gets taken out, will our rate cut expectations be completely thrown off? --- Basically, it's about political struggles. The independence of the Federal Reserve is almost a joke in the US now. --- Liquidity easing? Sounds good, but the prerequisite is that someone has to step in to take over. --- Aggressive rate cuts sound great, but can we still trust a Federal Reserve like that... --- It feels like everything now is related to power struggles, even the crypto world is bound to be affected. --- If Powell can't hold his ground, should we reduce our positions next week?

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