The subtle changes in the macroeconomic landscape can often have a profound impact on the encryption currency market. Recently, a notable event sparked widespread discussion in the market—on July 25, during a visit to the Federal Reserve building, Trump made a significant statement. He indicated that firing Federal Reserve Chairman Powell was not a necessary action, which starkly contrasts with his previous stance.

Looking back to 2018, Trump severely criticized Powell's interest rate hike policy multiple times, even suggesting he might be fired. Now, this significant change in attitude is not only surprising but has also triggered a reassessment of the direction of Federal Reserve policy in the market. This change may create new development opportunities for cryptocurrencies like Bitcoin.

The minutes from the Federal Reserve's July meeting indicate that the federal funds rate remains in the range of 4.25%-4.5%. However, market sentiment has undergone a subtle change. Data from CME FedWatch shows that the market's expected probability of a rate cut in July has risen to 55.2%. At the same time, the expectation for the number of rate cuts for the year has been adjusted from 3 times to 2 times, suggesting that the market anticipates rate cuts to occur, but the pace may be more moderate.

It is worth noting that Trump's policy stance presents a certain contradiction. On one hand, he implements tariff policies that may drive up inflation; on the other hand, he seems to accept the gradual interest rate reduction strategy led by Powell. This seemingly contradictory policy combination actually reflects a strategic consideration for stable economic growth.

Additionally, the Federal Reserve's balance sheet management strategy has undergone significant adjustments. The latest data shows that the cap on Treasury bond reductions has been drastically lowered from $25 billion per month to $5 billion, indicating a noticeable slowdown in the pace of balance sheet contraction. This series of changes in policy signals may indicate that U.S. monetary policy is shifting towards a more accommodative direction, which will undoubtedly have a profound impact on global financial markets, particularly on the encryption currency market.