Bitcoin Seeks Safe-Haven Status as the DOJ Targets Fed Chair Powell

crypthub

about 6 hours ago

Powell Claims DOJ Retaliation

Jerome Powell said the Justice Department served the Fed with grand‑jury subpoenas and threatened criminal charges as political pay‑back for the Fed’s interest‑rate decisions, not over a $2.5 billion building renovation. He wrote on Jan 11 that the threat is a “pretext” to push the FOMC toward lower rates. Powell asserted the indictment risk stems from his June testimony, linking it to congressional scrutiny rather than monetary‑policy statutes.

Market Reaction

Bitcoin edged higher, trading around $90,800 on CoinGecko and $91,200 on CoinMarketCap after the news. The episode sparked equity volatility, a weaker dollar and record‑high spot gold, reflecting broader risk aversion. Former Fed and Treasury officials warned the probe could undermine confidence in U.S. institutions.

Analyst Outlook and Risks

Goldman Sachs chief economist Jan Hatzius said the saga raises Fed independence concerns while keeping a data‑driven rate‑cut path for mid‑2026. Traders view BTC’s modest rise as a “rule‑of‑law” risk signal, anticipating higher term premiums and a softer USD if indictment threats materialize. Consequently, BTC may act less like a Nasdaq beta and more as a hedge against jurisdictional risk for funds with basis‑book exposure.

Bitcoin Seeks Safe-Haven Status as the DOJ Targets Fed Chair Powell

Powell Claims DOJ Retaliation

Market Reaction

Analyst Outlook and Risks

Powell Claims DOJ Retaliation