TLDR
- Bitcoin rose 1.5% to $92,094 on Monday as tensions between President Trump and Federal Reserve Chair Jerome Powell unsettled markets
- Powell revealed the Fed received a Department of Justice subpoena and faces potential criminal indictment over headquarters renovations, which he called politically motivated
- U.S. stock futures fell while Bitcoin climbed, showing unusual divergence from typical correlation with Nasdaq and suggesting safe haven demand
- Trump has repeatedly demanded the Fed cut interest rates to 1% or lower, calling Powell a “numbskull” as Powell’s term expires in May 2026
- Key U.S. consumer price index inflation data for December is due Tuesday, which will influence interest rate expectations
Bitcoin moved higher in Asian trading on Monday, reaching $92,094 as markets reacted to escalating conflict between President Donald Trump and Federal Reserve Chairman Jerome Powell.
The cryptocurrency gained 1.5% while U.S. stock futures declined. Nasdaq futures dropped 0.8% and S&P 500 futures fell 0.5%.
Powell disclosed over the weekend that the Department of Justice had subpoenaed the Federal Reserve. The central bank faces a potential criminal indictment related to ongoing renovations at its headquarters building.
BREAKING: Fed Chair Powell responds after Federal prosecutors open a criminal investigation into him:
“The threat of criminal charges is a consequence of the Fed setting rates based on our best assessment of what will serve the public, rather than following the preferences of… pic.twitter.com/y1dRdoQ1fm
— The Kobeissi Letter (@KobeissiLetter) January 12, 2026
The Fed Chair called the legal action politically motivated. He suggested the investigation aims to pressure the central bank into cutting interest rates more aggressively.
Trump has maintained steady criticism of Federal Reserve policies since taking office. The President wants interest rates reduced to 1% or lower to stimulate economic growth.
Bitcoin Shows Safe Haven Characteristics
The cryptocurrency stayed within its recent trading range of $89,000 to $95,000. However, its price movement diverged from typical patterns with technology stocks.
Whales have started closing their $BTC long positions.
A relief rally towards the $100,000-$102,000 level makes sense now. pic.twitter.com/WUv8tvkMn6
— Ted (@TedPillows) January 11, 2026
Bitcoin usually tracks the Nasdaq closely. The decoupling on Monday suggests traders may view the cryptocurrency as a safe haven asset during political uncertainty.
Gold reinforced this safe haven demand by reaching a record high of $4,600 per ounce. Both assets attracted buyers as traditional markets declined.
The Federal Reserve cut interest rates by 25 basis points in December to 3.5%. The central bank is expected to hold rates steady at least until March.
Powell’s term as Fed Chair expires in May 2026. Trump will name his successor in the coming months.
Prediction markets currently show low probability of Powell leaving his position early. Market participants appear to expect him to complete his term despite the ongoing tensions.
Geopolitical Concerns Add Pressure
Global geopolitical uncertainty contributed to market caution. Trump renewed demands for U.S. control of Greenland following recent events in Venezuela.
Diplomatic tensions between China and Japan remained unresolved. Protests in Iran and continued fighting between Russia and Ukraine added to investor concerns.
The dollar index slipped to 99.00 from Friday’s peak of 99.26. The decline came as investors weighed risks to central bank independence.
Broader cryptocurrency markets followed Bitcoin’s upward movement. Most altcoins posted modest gains while staying within recent trading ranges.
U.S. consumer price index data for December will be released Tuesday. The inflation figures will provide insight into the Federal Reserve’s future interest rate decisions.
Bitcoin traded at approximately $92,000 in late Asian trading hours. The cryptocurrency showed resilience compared to weakening equity futures.
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