Bitcoin Surges as DOJ Probes Federal Reserve Chair

Bitcoin price surged toward $92,000 as the Department of Justice launched a criminal investigation into Federal Reserve Chair Jerome Powell. The probe has intensified a months-long feud between the White House and the central bank, creating ripples across both cryptocurrency and traditional financial markets.

The investigation centers on Powell's June 2025 testimony regarding a $2.5 billion renovation of Fed office buildings. According to Powell, the DOJ served the Federal Reserve with grand jury subpoenas and threatened criminal indictment, characterizing the move as politically motivated pressure from the Trump administration to cut interest rates more aggressively.

Market reactions were immediate and pronounced. While Bitcoin climbed into the $91,000–$92,000 range, traditional markets showed signs of stress with U.S. stock futures sliding. Safe-haven assets including gold and silver simultaneously surged to record levels, reflecting deep investor uncertainty about the independence of U.S. monetary policy.

The cryptocurrency's behavior marked a notable departure from its typical risk-asset profile. Over the weekend and into Monday, Bitcoin posted intraday gains exceeding 0.5% on both January 11 and 12, demonstrating a gradual upward trend amid growing macroeconomic uncertainty.

Bitcoin Magazine Pro data revealed the cryptocurrency reached an intraday high of roughly $92,400 during the period. More significantly, Bitcoin's price movement appeared to decouple from broader market weakness, moving independently as traders positioned the asset as a hedge.

This positioning reflects mounting concerns over the Federal Reserve's independence and potential shifts in U.S. monetary policy. The asset's correlation with traditional safe-haven instruments suggests a fundamental shift in how market participants view Bitcoin during institutional crises.

Current market metrics include:

• 24-hour trading volume of $48 billion
• Circulating supply of 19,975,018 BTC
• Market capitalization of approximately $1.83 trillion
• Price approximately 1% below the 7-day high of $92,356

The investigation has exposed deep tensions between the executive branch and the central bank. President Donald Trump has publicly criticized Powell's performance while denying direct involvement in the DOJ action, though he has consistently reiterated dissatisfaction with the Fed's monetary policy stance.

The move as politically motivated, claiming it reflected pressure from the Trump administration to cut interest rates more sharply than the Fed's data-dependent stance.

Powell's characterization of the investigation as politically driven highlights the delicate balance between monetary policy independence and political pressure. The DOJ's action has sparked debate among critics and defenders of the central bank.

Supporters of the investigation argue it validates concerns about Federal Reserve accountability and undermines the institution's claimed independence. Conversely, Fed defenders emphasize the critical importance of insulating monetary policy decisions from political interference, regardless of the investigation's merits.

The widening dispute represents a significant escalation in institutional tensions that could have lasting implications for how central banking operates in the United States.

From a longer-term perspective, Bitcoin remains significantly below its record highs above $126,000 reached in early October 2025. The cryptocurrency has retraced substantially in recent months, with the first week of January 2026 seeing BTC mostly trade between $88,000 and $94,000, establishing a consolidation range following late-2025 weakness.

Technical indicators present a complex picture. Last week, Bitcoin faced resistance at $94,000, failing to sustain gains and closing at $90,891. Sunday's doji candle signaled indecision and potential bearish reversal, with bulls lacking momentum to break through resistance while bears gained a slight edge.

Key support and resistance levels define the current trading environment:

• Immediate Support: $87,000 and $84,000
• Critical Support: Low $70,000 range if $84,000 breaks
• Fibonacci Level: $58,000 (0.618 retracement)
• Short-term Resistance: $91,400
• Long-term Resistance: $94,000, then $98,000–$103,500

Analysts project that bears may pressure Bitcoin toward $87,000 this week, while bulls will fight to maintain this support. A daily close below $87,000 would endanger the $84,000 level, requiring significant buying pressure to hold.

The overall market sentiment currently leans bearish, with analysts expecting continued volatility in the near term. Price action may remain range-bound between $84,000 and $94,000 as neither bulls nor bears appear to maintain firm control over market direction.

Traders are closely monitoring key price levels that could signal the next major move. A close above $94,000 could trigger upward momentum and potentially restart the bullish trend, while a close below $84,000 would signal a deeper correction with targets in the low $70,000s.

The current consolidation phase reflects broader uncertainty about the investigation's outcome and its potential impact on Federal Reserve policy. Market participants appear to be taking a wait-and-see approach, positioning for potential volatility while respecting established technical boundaries.

With Bitcoin trading at approximately $91,749 at the time of reporting, the cryptocurrency sits near the upper end of its recent range, suggesting that any breakout above resistance could face significant selling pressure from bears looking to defend the $94,000 level.

The Department of Justice's criminal investigation into Federal Reserve Chair Jerome Powell has created a unique market environment where Bitcoin is behaving more like a safe-haven asset than a risk-on technology investment.

Key developments to monitor include:

• Progress of the DOJ investigation and any formal charges
• Bitcoin's ability to hold the critical $87,000 support level
• Traditional market reactions to ongoing institutional tensions
• Potential policy responses from the Federal Reserve

The intersection of political pressure, monetary policy independence, and cryptocurrency markets has created a fluid situation that could reshape how investors view Bitcoin's role during periods of institutional stress. The coming weeks will likely determine whether this represents a temporary reaction or a fundamental shift in Bitcoin's market behavior.