Recently, the market has been buzzing over what appears to be an ordinary "renovation scandal"—the U.S. Federal Reserve headquarters renovation project overspent by $700 million, and the Department of Justice has launched a criminal investigation into Powell. But it's not that simple.

On the surface, it's about project funds and the authenticity of testimonies, but in reality, it's a naked power struggle. Powell directly fired back in a statement: "This is retaliation!" Why say that? Because he did not cut interest rates significantly as Trump demanded, but instead insisted on making decisions based on economic data.

The conflict between the two has long been evident. In July last year, Trump called Powell "Mr. Too Late," criticizing the slow pace of rate cuts. In August this year, the White House even attempted to dismiss Federal Reserve Board member Lisa Cook, a move clearly aimed at "cleaning out" the Fed Board and installing their own people. The timing of this Department of Justice investigation couldn't be more perfect—it just happens to be before Powell's term ends in May next year, and Trump has already publicly indicated that his successor is decided.

In essence, the renovation overspending and false testimonies are just smokescreens. The real battleground is who will lead U.S. monetary policy. The White House wants to loosen liquidity to stimulate the economy, but the Fed is wary—remember the lessons from the 1970s, when the Fed blindly flooded the market to please the White House, resulting in inflation soaring to 13% and the economy crashing.

Why is this so critical for the crypto world? Because once the Fed cuts rates, the dollar interest rate drops, and cheap money will flood the market. Hot money won't sit quietly in banks earning zero interest; it will likely flow into higher-risk, higher-yield assets like Bitcoin. Simply put: the stronger the expectation of rate cuts, the more positive signals there are for the crypto market. But Powell's cautious stance has directly poured cold water on the market. The current situation is a standoff, with both sides exerting pressure, and crypto investors are waiting for the outcome in this game.