Recently, the focus of the crypto market has been on the Fed's interest rate decisions, which not only concern the trends of Bitcoin and Ethereum but also sparked a fierce debate among high-level officials. On July 31, Trump launched a fierce attack on Fed Chairman Powell, stating that he is "too angry, stupid, and politicized," even bluntly saying he is unfit to serve as Fed Chairman. This remark immediately triggered fluctuations in market sentiment. Let's analyze the potential impact of this "President vs Central Bank Governor" dispute on the crypto market.

Trump is eager for the Fed to cut interest rates, mainly to stimulate economic growth. Currently, the U.S. economy is facing dual challenges: on one hand, tariff policies have led to rising prices for imported goods, increasing inflationary pressure; on the other hand, manufacturing data shows signs of an economic slowdown. In this context, cutting interest rates can lower borrowing costs, stimulate investment and consumption, and alleviate the negative impacts of tariff policies.

However, Powell seems to be unconvinced. The Fed maintained the interest rate at 4.25%-4.5% for the fifth consecutive time at the meeting on July 31, and hinted that there may not be a rate cut in September either. Powell stated that he would only consider a rate cut if there was a significant decline in inflation or a deterioration in the labor market. This decision sparked strong dissatisfaction from Trump, who directly accused Powell of "messing up" on social media, and compared it to the European Central Bank, which has cut rates multiple times, believing that the Fed's policy could hinder the economy.

For the crypto market, the Fed's interest rate policy has an important impact. Market participants generally believe that a rate cut means a loosening of monetary policy, which could lead to more funds flowing into risk assets, including crypto assets. This "liquidity" effect may stimulate price increases for digital assets such as Bitcoin and Ethereum.

However, the Fed's cautious attitude also reflects concerns for economic stability. Rapidly lowering interest rates could exacerbate inflationary pressures, which would be detrimental to long-term economic health. For the crypto market, this cautious stance may result in a lack of strong upward momentum in the short term.

Overall, the game between Trump and the Fed will continue to influence market sentiment. Investors need to closely monitor future economic data and policy signals, weighing potential risks and opportunities. In any case, participants in the crypto market should remain rational and avoid over-reliance on a single factor when making investment decisions.