A significant development has emerged in the ongoing tension between the White House and the Federal Reserve as the Department of Justice has initiated a criminal investigation into Fed Chair Jerome Powell. This probe has resulted in a notable reaction from the bitcoin market.
The investigation is reportedly linked to Powell’s testimony regarding a substantial renovation of Federal Reserve office buildings, costing over $2.5 billion. According to Powell, the DOJ issued grand jury subpoenas and hinted at potential criminal charges related to his comments made in June 2025. He has asserted that these actions are politically motivated, suggesting they reflect pressures from the Trump administration to adopt more aggressive interest rate cuts than the Fed has deemed appropriate based on existing economic data.
Former President Donald Trump has publicly expressed dissatisfaction with Powell’s handling of monetary policy but has denied any personal involvement in the DOJ’s actions. He has repeatedly criticized the Federal Reserve’s approach, fueling the ongoing feud between the two institutions. The ramifications of this conflict have been felt across financial markets, leading to a decline in U.S. stock futures while safe-haven assets, such as gold and silver, surged to record highs.
In the wake of this investigation, the price of bitcoin has displayed marked volatility. Following a period of relative stagnation over the recent weekend, bitcoin’s value spiked to between $91,000 and $92,000. Data from Bitcoin Magazine Pro highlights that the cryptocurrency reached an intraday high of approximately $92,400 during the transition from Sunday to Monday, indicating a significant recovery phase. An analysis covering January 11 and 12 showed bitcoin gaining over 0.5% on both days, which suggests that it may be establishing an upward trajectory amidst increasing macroeconomic concerns.
Interestingly, bitcoin’s recent price movements have begun to mirror those of traditional safe-haven assets rather than that of typical risk instruments. This behavior implies that traders may be utilizing bitcoin as a hedge against the uncertainties surrounding the Federal Reserve’s independence and shifts in U.S. monetary policy. However, when considering the longer-term perspective, bitcoin remains well below its record highs above $126,000 achieved in early October 2025, having seen significant declines over recent months. In early January 2026, bitcoin traded predominantly in the $88,000 to $94,000 range, signifying a consolidation phase following late-2025 downturns.
Looking ahead, Bitcoin Magazine’s latest analysis indicates that bitcoin is encountering resistance around the $94,000 mark, failing to maintain recent gains and closing at $90,891. The formation of a “doji” candle signals indecision among market participants, suggesting a potential bearish reversal. Current indicators reveal that bullish momentum is waning, with bears gaining a slight advantage. Key support levels to watch are at $87,000 and $84,000; a breach of the $87,000 mark could send bitcoin towards the low $70,000 range, while the bulls may target support around the 0.618 Fibonacci retracement level at $58,000 should current supports fail.
Resistance levels remain at $91,400 in the short term and at $94,000 for the longer outlook, with additional resistance zones identified between $98,000 and $109,000. As this week progresses, market dynamics could force bitcoin towards the $87,000 support level, while bullish efforts will aim to sustain this threshold. Analysts are advising that a close above $94,000 could spark upward momentum, whereas a close below $84,000 could signify a deeper correction.
Currently, bitcoin’s price stands at $91,749 with a trading volume of approximately $48 billion over the past 24 hours. This represents a slight decrease of 1% from the week’s high of $92,356 and a 2% increase from its low of $90,129 during the same period. The total circulating supply of bitcoin is 19,975,018 BTC, with a maximum supply cap of 21,000,000 BTC, while the global market cap for bitcoin is noted at $1.83 trillion, marking a 1% change from 24 hours ago. As market sentiment leans toward a bearish outlook, volatility can be expected in the shorter term.
