The US financial policy landscape in 2025 may face significant adjustments. According to market observations, the selection of the new Federal Reserve Chair will be led by the Treasury Department, and this shift in power structure could profoundly influence the direction of monetary policy.

What does it mean when the Treasury Department gains greater influence in monetary policy?

Traditionally, the Federal Reserve operates as an independent institution with relatively autonomous decision-making power. But if the influence of the Treasury Department increases, policy tendencies are likely to lean more toward expansionary measures—such as more aggressive rate cuts and larger-scale quantitative easing(QE). Historical patterns support this: during the 2020 pandemic, rate cuts and large-scale money printing cycles drove Bitcoin from $7,000 to the $60,000 range.

The chain reactions resulting from this shift are worth noting:

First, the real purchasing power of the US dollar faces dilution pressure. The cycle of debt issuance and money printing led by the Treasury will accelerate dollar depreciation. Second, inflation expectations may resurface. Once rate cuts and QE are initiated simultaneously, the speed of cash devaluation will surpass expectations. Third, the safe-haven attributes of crypto assets will be reinforced. As traditional financial systems enter an unlimited expansion mode, Bitcoin’s positioning as "digital gold" will gain new market recognition.

Market participants are already adjusting their strategies. Some institutional investors are increasing their holdings of Bitcoin and Ethereum, betting on a decline in dollar confidence over the next 1-2 years and a long-term reassessment of crypto assets’ value.

For ordinary investors, the key is to recognize the trend. When the power structure determines the direction of money printing, allocating part of your wealth outside the traditional system becomes a necessary risk management measure. Timing, position management, and risk control remain critical variables in determining ultimate returns.