The Federal Reserve's independence wavers, Bitcoin becomes a market risk barometer

OffchainWinner · 2026-01-20T01:53:20+00:00

After the January CPI release, although the cryptocurrency market felt somewhat relieved, the Federal Reserve's political independence was challenged and became the market's focus. The core CPI remained stable, but the rise in the Producer Price Index indicated that inflationary pressures still exist, making it difficult for the Federal Reserve to cut interest rates in the short term. Bitcoin is seen as a risk benchmark, and market concerns about the Federal Reserve have escalated into systemic risk.

OffchainWinner

2026-01-20 01:53:20

Abstract generation in progress

Source: TokenPost Original Title: Podcast Ep.353ㅡPolitics More Than Inflation… As Fed Independence Wavers, Bitcoin Becomes a Risk Signal Original Link:

Market Reaction After January CPI Release

Immediately after the January CPI release, the cryptocurrency market found some relief, but the real impact lies in the weakening of the Federal Reserve’s political independence. According to a mid-January weekly report from Alea Research, the Fed’s decisions may be influenced by political pressures beyond economic indicators, and this concern has become a core variable in the market. The report states that the Federal Reserve “is no longer a fully independent institution; the market is now viewing it as a systemic risk factor rather than just a news event.”

CPI Data and Market Expectations

This year’s first Consumer Price Index (CPI)( overall met market expectations, easing concerns about further inflationary pressures. Particularly, core CPI remained stable, with some items) airline ticket +5.2%, used cars -1.1%( showing divergent trends. However, the Producer Price Index (PPI)) core items increased year-over-year by +3.5%, indicating ongoing inflationary pressures in energy and commodities, making it difficult for the Federal Reserve to shift toward rate cuts in the short term.

Market Outlook

As long-term interest rate trends and the credibility of the Federal Reserve become key standards for market judgment, Bitcoin is increasingly becoming a benchmark for short-term risk assessment. Concerns over the Fed’s political independence have evolved from mere policy discussions to a recognition of systemic risk.

BTC-2,11%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

7 Likes

Reward
7
6
Repost
Share

Comment

0/400

TestnetScholar

· 1h ago

If the independence of the Federal Reserve wavers, Bitcoin will have to serve as a risk warning indicator. This trade is too unprofitable, haha.

View OriginalReply0

PhantomHunter

· 9h ago

Well... ultimately, it's still political interference. I'm already tired of looking at the data.

View OriginalReply0

Whale_Whisperer

· 9h ago

Is the Federal Reserve's independence gone? Then our BTC has really become a barometer... Political interference in the economy is always headache-inducing.

View OriginalReply0

LuckyHashValue

· 9h ago

Is the Federal Reserve really going to become a political tool? Then it makes sense that Bitcoin's recent surge is happening; the risk indicator is undoubtedly him.

View OriginalReply0

CommunityJanitor

· 9h ago

The Fed's independence is really gone, and it's hard to hold on. Bitcoin has instead become a risk warning mechanism... This irony is a bit harsh.

View OriginalReply0

BloodInStreets

· 9h ago

The independence of the Federal Reserve has been compromised, and Bitcoin has become the market's sentinel... This is the real systemic risk. --- Here we go again, politics are more deadly than inflation, no wonder the crypto world is starting to stir. --- Wait, is the Federal Reserve no longer independent? Then we retail investors better start bottom-fishing with blood sacrifices. --- Damn, the risk signal lights are on, but the market is still pretending not to see. --- Political hijacking policies... Now BTC has truly become a panic indicator, I need to recalculate my accounts. --- No, if the Federal Reserve becomes a political tool, can crypto still rise? This logic can't hold up. --- Systemic risk is the main course; CPI data is just a false alarm. --- Missing the opportunity will really make you regret it; in times like these, contrarian moves are the way to go. --- It's over, even the Federal Reserve can't protect it; the asset safe haven is gone. --- I'll jump in once the decline hits bottom; political chaos might actually be an opportunity.

View OriginalReply0