The Fed's power game scene is all too familiar to crypto traders. Powell is under pressure, and more aggressive hawkish figures are taking the opportunity to step in. This script has played out multiple times in the crypto world.

It seems like a political crisis, but it could actually become a turning point for market pricing. What are the markets most afraid of now? Not the rate hikes themselves, but the ambiguity in policy direction. If hawkish figures really take the helm, it may initially hit risk assets in the short term, but at least the policy path will become clearer and more predictable. This, in turn, makes it easier for traders to establish positions—clear negative signals are often better priced in than vague positives.

Interestingly, once the Department of Justice intervened, the probability of Powell stepping down dropped from 74% to 45%. It’s like trading—if you push too hard, you might get a rebound.

Will history repeat itself? In 2018, Bitcoin plummeted from $6,000 to $3,000 amid intense panic. And what happened next? It later surged tenfold. The benefit of hawkish policies is that expectations become rigid, but this rigidity can actually provide institutional big players with a more secure window to build positions.

Now, Wall Street is all waiting for the right moment to jump in. Any political-induced dip is just an excuse for them to buy at lower prices. Instead of being led by news, it’s better to wait until genuine panic sets in and then deploy in stages. Don’t chase the rally, don’t panic sell—stay steady.