The internal power struggle within the Federal Reserve has become increasingly evident. On one side are the traditional hawks advocating for a strong dollar, while on the other are emerging forces pushing for more accommodative policies — this covert competition for influence is rewriting the fate of the dollar.

The data is clear: the US Dollar Index has recorded its worst annual performance in nearly twenty years, signaling more than just minor fluctuations — it indicates a trend of decline. Even more concerning is the gradual erosion of central bank independence, with the lines between political and economic factors becoming increasingly blurred.

Some refer to these behind-the-scenes players as the "Shadow Fed," which sounds mysterious, but essentially they are those who bypass official channels to exert pressure. Every move they make could steer the dollar in different directions — whether to stabilize and rebound, or to continue depreciating and further weaken — who holds the decision-making power remains uncertain.

For the cryptocurrency market, the dollar's trajectory directly impacts capital flows. Persistent pressure on the dollar often means that risk assets are more likely to receive liquidity support. That’s why monitoring the Federal Reserve’s actions and understanding macroeconomic policy logic are so crucial for crypto investors.