TLDR
- Bitcoin price briefly rallied above $92,000 but fell back to $91,800 after reports of a DOJ investigation into Federal Reserve Chair Jerome Powell
- Bitcoin spot ETFs recorded a total net inflow of $117 million, turning positive after four consecutive days of net outflows
- Strategy added $1.25 billion worth of Bitcoin in its largest purchase since July 2025, but BTC still cannot hold above $94,000
- Bitcoin futures show a neutral 5% basis rate, well below the 10% level that typically indicates bullish sentiment
- Upcoming US consumer price index data for December could impact Federal Reserve interest rate decisions and Bitcoin price movement
Bitcoin price dropped to $91,894 on Tuesday morning after briefly rallying above $92,000 following news of a potential Department of Justice investigation into Federal Reserve Chair Jerome Powell. The cryptocurrency has struggled to maintain momentum through late 2025 and early 2026.
The recent rally came after Powell disclosed he received threats of legal action from the DOJ. Powell stated the threats were officially linked to an ongoing renovation of the Fed’s headquarters. However, he believes they were meant to pressure the central bank into lowering interest rates.
Bitcoin has fallen 23% since October 2025. During the same period, gold and silver reached all-time highs in 2026. This divergence has caused traders to question the digital store-of-value narrative.
On January 12 (ET), Bitcoin spot ETFs saw a total net inflow of $117 million, turning positive after 4 consecutive days of net outflows. Ethereum spot ETFs reported a total net inflow of $5.042 million, ending a 3-day net outflow streak. Solana spot ETFs recorded a total net… pic.twitter.com/t8ahgo3pdR
— Wu Blockchain (@WuBlockchain) January 13, 2026
Bitcoin spot ETFs saw a total net inflow of $117 million, turning positive after four consecutive days of net outflows. The shift in ETF flows suggests some institutional interest may be returning to the market. However, traders remain cautious about the cryptocurrency’s near-term prospects.
Corporate Buying Fails to Lift Bitcoin Above Key Resistance
Strategy announced its largest Bitcoin purchase since July 2025 on Monday. The company led by Michael Saylor added $1.25 billion worth of BTC. Despite this purchase, Bitcoin has been unable to sustain levels above $94,000 over the past month.
Strategy has acquired 13,627 BTC for ~$1.25 billion at ~$91,519 per bitcoin. As of 1/11/2026, we hodl 687,410 $BTC acquired for ~$51.80 billion at ~$75,353 per bitcoin. $MSTR $STRC https://t.co/5UttS1LCy2
— Michael Saylor (@saylor) January 12, 2026
Bitcoin futures data shows traders remain cautious. The BTC futures annualized premium, or basis rate, stayed near a neutral 5%. Periods of bullish sentiment typically show Bitcoin futures trading at a 10% premium or more relative to spot markets.
Goldman Sachs no longer expects an interest rate cut in March. The bank cited sticky inflation and resilient labor market data. President Donald Trump has criticized the Fed for keeping interest rates elevated while inflation remained above the 2% target throughout the second half of 2025.
Geopolitical Tensions and CPI Data in Focus
Traders are watching Tuesday’s US consumer price index inflation data for December. The print is expected to show headline CPI remaining steady at 2.7% annually. Core CPI is expected to have risen slightly.
December CPI prediction market by @Kalshi expects 2.6% YoY announcement tomorrow morning.
If we get 2.7% or lower (~78% chance), this will support further rate cuts.
Put together a good report by $JPM tomorrow morning.$SOFI never sees $20s after a few weeks. pic.twitter.com/pTrfy62ayE— Winner Investor MD (@WinnerInvestor) January 12, 2026
Signs of persistent inflation could give the Federal Reserve less reason to cut interest rates in the coming months. Powell’s time as Fed chair ends in April. Trump prepares to announce his nominee for Powell’s successor.
Geopolitical tensions also weighed on crypto markets. Increased public unrest in Iran and fears of US intervention rattled markets. In Asia, a diplomatic spat between China and Japan showed few signs of cooling.
The US Dollar Strength Index rebounded to 99 from a 96.7 low in late November 2025. The 5-year Treasury yield remained below 3.8% over the past couple of months. Despite the $601 billion fiscal deficit recorded in the final three months of 2025, US government debt retained its investment-grade status.
Growing focus on artificial intelligence and technology stocks has pulled capital away from cryptocurrency markets. AI blew past Bitcoin in terms of returns in 2025. This shift has curbed crypto’s tendency to track tech stocks.
Bitcoin reclaimed $91,000 on Monday but traders showed little interest in turning bullish according to derivatives data. There is currently no clear evidence of a debasement trade despite the strong rally in precious metals. Bitcoin price stood at $91,894 by 00:33 ET on Tuesday.
