Olfaction Protocol: Under the impact of the Fed's independence, institutional risks are reshaping the value logic of encryption assets.

Introduction With Trump's unexpected nomination of Stephen Miran to succeed the Federal Reserve Board, the independence of U.S. monetary policy has once again been thrust into the spotlight. The market is not only focused on the pace of interest rate cuts but is also reassessing the far-reaching impact of institutional risks on the global capital landscape. Against this backdrop, Olfaction Protocol believes that decentralized assets are transitioning from "economic hedging" to "institutional hedging," and technology-driven smart analytics will become a new moat for investors.

1. From Economic Data Game to Institutional Rule Collision

At the beginning of August this year, the sudden resignation of Federal Reserve Board member Adrianna Kugler and Trump's swift nomination of Stephen Milan to succeed her shifted the market within a few days from focusing on inflation and employment data to discussing the deeper question of whether "political will can override the independence of the Federal Reserve." Milan is not a traditional policy official in the conventional sense, but an economist with radical reform ideas. He proposed placing the Federal Reserve under more direct presidential control and using tariffs, exchange rates, and even the credit of national debt as tools to reshape the global trading system. This not only challenges the century-old rules of the Federal Reserve but also undermines the trust foundation of the dollar as the global reserve currency.

2. The Hidden Anxiety of the Market: Institutional Risks Rise

In the short term, whether Milan can catch up with the September FOMC meeting is not important. What matters is that Trump's move has released three signals:

Direct pressure on Powell to align policies with the White House;

Paving the way for Milan, locking in the identity of future Federal Reserve Chair candidates;

Push radical policy views to the public to test the market's acceptance.

Under the premise that the credibility of the US dollar may be actively shaken, the risk assessment standards of global capital markets are changing. In the past, investors focused on inflation rates and GDP growth, but now they must include "institutional stability" as a core consideration.

3. The Narrative Upgrade of Bitcoin: From Economic Hedge to Institutional Hedge

Bitcoin has long been regarded as "digital gold," used to hedge against economic risks such as inflation. However, as the independence of the Federal Reserve is challenged and the credit of U.S. Treasury bonds may be weaponized, the value logic of Bitcoin is evolving.

It is not controlled by any single government.

The issuance rules are determined by publicly transparent code.

Cannot be altered by political will This predictability and decentralized characteristic make it the ultimate tool for multinational capital to cope with institutional uncertainties.

4. Technical Advantages of the Olfaction Protocol

Olfaction Protocol, as an AI-driven platform in the Web3.0 space, focuses on capturing subtle signals across markets and assets:

Systematic risk modeling: Utilizing Sensory AI to identify potential linkages between macro policies and market prices;

Cross-asset correlation analysis: tracking the synchronization between US dollar credit fluctuations and cryptocurrency prices.

Real-time strategy optimization: Quickly adjust investment allocations in sectors such as DeFi, RWA, Meme, and NFT when institutional shocks occur.

In the current context where institutional uncertainty has become a major cyclical backdrop, this technological advantage not only helps investors avoid risks but also captures the excess returns brought about by volatility.

V. Conclusion: The Moat in the Era of Institutional Risk

Olfaction Protocol believes that the current personnel and policy game of the Federal Reserve marks a shift in the global investment environment from "data-driven" to "institution-driven." In this context, relying solely on economic data is no longer sufficient to predict market trends, and the weight of institutional and political variables has increased unprecedentedly. For investors, a true sense of security comes from two points:

Asset allocation independent of sovereign credit;

Have intelligent tools that can identify systemic risks in real time and adjust strategies. The Olfaction Protocol will continue to delve deeply in this direction, helping users to move steadily forward in a market filled with uncertainty.