Catenaa, Monday, January 19, 2026-Bitcoin rose modestly as Federal Reserve Chair Jerome Powell disclosed that the Justice Department served the Fed with grand jury subpoenas and threatened criminal charges.
Powell framed the move as political retaliation over interest rate policy rather than the Fed’s $2.5 billion building renovation.
Powell’s statement on January 11 cited the threat of indictment as a pretext to pressure the Federal Open Market Committee toward lower rates.
He emphasized that the Fed sets interest rates based on economic conditions rather than presidential preferences.
The subpoenas were issued on January 9 and relate to his June congressional testimony regarding the renovation project.
Markets reacted quickly outside crypto. Equity volatility increased, the U.S. dollar weakened, and spot gold reached new highs. Former Fed chairs and ex-Treasury officials warned the probe could erode confidence in US institutions.
Goldman Sachs economists indicated the episode heightens concerns about central bank independence while keeping a baseline expectation for data-driven monetary policy.
Analysts revised projections for potential rate cuts in June and September 2026, influencing macro-driven demand for bitcoin.
Bitcoin traded around $90,822 on CoinGecko and $91,226 on CoinMarketCap, reflecting cautious buying amid uncertainty.
Traders see BTC and gold as non-sovereign assets that could benefit from rule-of-law or political risks, as well as potential liquidity tailwinds from future rate adjustments.
Market watchers are monitoring whether subpoenas escalate into formal indictments, which could widen interest rate volatility, weaken the dollar further, and strengthen demand for alternative collateral including cryptocurrencies and precious metals.
