Bitcoin moved above the $92,000 level late Sunday as the official escalation surrounding Federal Reserve Chairman Jerome Powell became public. A contributing factor was Powell’s decision to speak publicly about Justice Department subpoenas and criminal investigations that he described as political pressure aligned with the administration’s estimates.
In a video released Sunday evening, Powell spoke directly to US President Donald Trump: “The threat of criminal charges is the result of setting the Fed’s rates based on our positive assessment that will benefit the public, rather than following the President’s preferences.”
BREAKING: Fed Chairman Powell responds after federal prosecutors open investigation into him:
“The threat of criminal charges is the result of the Fed setting rates based on our best judgment of what will serve the public, rather than following the Fed’s preferences… pic.twitter.com/y1dRdoQ1fm
— The Kobeissi Letter (@KobeissiLetter) January 12, 2026
The Bitcoin Community Reacts to the News
Bitcoin and the broader crypto market quickly responded with a decent push higher, while “metals [were] it explodes,” as commentator Will Clemente wrote of X.
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It’s a matter of time for crypto traders: the Fed is headed for its meeting on January 28, the market is increasing further to pause, increasing sensitivity to any idea that the monetary policy is drawn into the conflict of the group.
To native Bitcoin watchers, the episode reads like a real-time stress test of institutional trust: flattering Bitcoin’s tone. Clemente added about X: “This place is exactly what Bitcoin was created for. The President is coming from behind the Fed chair. Metals are tearing up as kings are splitting reserves. Stocks and risk assets are at a high. The risk of the political landscape is increasing.”
Alex Thorn, head of rigorous research at Galaxy, put the difference in monetary regimes front and center, arguing that Bitcoin’s monetary policy “which is neutral, predictable, transparent, and censorship resistant looks very good here,” after flagging Powell’s view that subpoenas are “pretexts” for administrative policy interference.
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Others use this time to extend the case to more than any one person. Bitwise consultant Jeff Park argued that “independence alone cannot be a virtue when a central institution does not work,” adding that “the age of Bitcoin is approaching.” Walker, a prominent pro-Bitcoin voice, put it as a structural problem: “The problem is not President Trump or Jerome Powell. The problem is a centralized cabal of unelected bankers setting the price of the currency and printing it out of thin air.”
Significantly, the bullish reflex was not based on sympathy for Powell. Strive CEO Matt Cole wrote that he has “no sympathy” for the Fed chairman and accused the central bank of “gas lighting.”[ing] Americans” independently, concluding: “Bitcoin has a much lower value than we realized …”
Bitcoin’s move to $92,000 puts that narrative on the price chart, but the same political and legal loop that fuels the “neutral currency” thesis may intensify volatility. “For the first time, Fed Chairman Powell is fighting back: For the past 12 months, Fed Chairman Powell has been silent amid criticism of President Trump,” Kobeissi Letter wrote on X, adding: “Today, that has changed. […] Trump vs Powell will lead to even greater change. “
At press time, Bitcoin traded at $91,560.
The featured image was created with DALL.E, a chart from TradingView.com
