Starting in 2026, the cryptocurrency market is facing a tug-of-war caused by a major political conflict. The Trump administration's support for cryptocurrencies and its efforts to promote rate cuts are theoretically favorable for assets like Bitcoin. However, its attacks on the Federal Reserve's independence have unsettled large institutional investors, increasing market uncertainty. Analysts point out that Bitcoin can serve both as a hedge against the US dollar influenced by political pressure and as a risk asset sold off during market turbulence. The ultimate outcome depends on whether Fed Chair Powell will stick to his stance or if the White House will push for lower interest rates, the latter potentially triggering a large-scale rally. Despite the tense situation, the total market capitalization of cryptocurrencies increased by 3.22% within 24 hours, reaching $3.24 trillion.