## The Federal Reserve Power Struggle: The Hidden Coup in Global Financial Markets by 2026

Recent actions by the Trump administration against the Federal Reserve have sent shockwaves through the markets. By accusing Fed Chair Powell of "wasting funds," a deeper game surrounding central bank independence has emerged—this is not just political rhetoric but could reshape the global financial landscape in 2026.

### The True Interests Behind the Surface Conflict

The pressure on the Federal Reserve is primarily aimed at the upcoming change of Fed Chair in May 2026. The government seeks to influence the appointment to favor candidates aligned with its policy preferences—commonly referred to by the market as "dovish" policy stances. But this seemingly routine personnel change actually touches on the fundamental principles of the Fed’s autonomous monetary policy over the past century.

Once the Fed’s independence is deeply eroded by political factors, subsequent policy decisions may no longer be data-driven but influenced by political cycles. This means:

**Risk Port**: Excessive liquidity release to stimulate economic growth could trigger a new round of inflationary pressures. Alternatively, policy paralysis might cause market rules to suddenly change.

**Opportunity Window**: Regardless of the outcome, trust in the traditional financial system will decline. Historical experience shows that such periods often become key windows for capital to seek alternative assets for safe haven.

### The New Era Narrative of Crypto Assets

In this context, the narrative of Bitcoin as a "non-sovereign currency" will be reignited. Currently, Bitcoin is quoted at $91.36K, with a 24-hour increase of +1.40%, and a market cap of $1.82 trillion, reflecting the market’s gradual pricing in policy uncertainty.

Compared to this, the performance of the Ethereum ecosystem demonstrates recognition of its long-term application value. ETH is currently priced at $3.14K, with a 24-hour increase of +0.94%, and a market cap of $378.8 billion. For participants optimistic about blockchain’s endogenous economic development, such assets offer different allocation strategies.

### Market Response to the Coup Risk

When central bank independence is challenged, market participants typically adopt three strategies:

**First**: Preemptively allocate core assets with anti-inflation properties. Bitcoin, with its fixed total supply, has long been regarded as an inflation hedge.

**Second**: Focus on structural opportunities within the ecosystem. Ethereum and related DeFi ecosystems can provide independent value creation pathways during policy chaos.

**Third**: Enhance risk management standards, appropriately reduce leverage exposure, and wait for clearer policy signals.

### Conclusion

The narrative of a Fed coup in 2026 is no longer speculation but an emerging reality. This power restructuring will not only influence the dollar’s trajectory but also redefine the flow of global capital. For every market participant, understanding the deeper significance of this change is far more critical than chasing short-term gains or losses.

Regardless of the final outcome, crypto finance as a new store of value and trading medium is increasingly being viewed by capital as an essential tool to hedge against uncertainty.