The Canadian dollar picked up momentum this week, bouncing back after recent weakness. Here's what's driving it: growing concerns about the Federal Reserve's independence are making waves in currency markets.

When there's chatter about central bank autonomy, investors tend to reassess their positions across major fiat pairs. The CAD's recovery reflects this shift—traders are repositioning as they gauge how Fed policy might unfold differently than expected.

Why does this matter for crypto folks? Currency volatility and macro policy uncertainty have historically pushed capital toward alternative assets. When traditional forex markets get choppy, more money tends to flow into digital assets as a hedge. Plus, Fed independence talk often signals potential policy divergence, which can spark broader risk-on or risk-off sentiment in the broader market.

Keep an eye on how this plays out. If the independence debate intensifies, we could see bigger swings in not just CAD, but across multiple asset classes including crypto.