Bitcoin Price Climbs Near $92,000 as the Federal Reserve and DOJ Showdown

Bitcoin (BTC) climbed to an intraday high of $92,519 on January 12, 2026, as investors reacted to a criminal investigation into Federal Reserve Chair Jerome Powell. The investigation, which concerns Powell's testimony about the renovation of the Fed headquarters, has sparked concerns over central bank independence. Powell stated the probe reflects efforts to politically influence monetary policy decisions.

The U.S. Department of Justice confirmed the investigation through grand jury subpoenas issued to the Federal Reserve. Powell described the move as an attempt to challenge the Fed's autonomy. The investigation follows months of public pressure from the Trump administration for deeper rate cuts.

Gold prices surged to a record high of $4,600 per ounce amid the political tension, with investors seeking safe-haven assets. Analysts attribute the move to heightened concerns over financial stability and U.S. institutional integrity. Silver also climbed, reaching over $84 per ounce, as the market reassessed risk.

Why Did This Happen?

Federal Reserve Chair Jerome Powell confirmed the investigation in a statement released on January 11, 2026. He framed the issue as a test of the Fed's independence. The investigation reportedly centers on alleged misrepresentations regarding the cost of renovating the Fed's headquarters.

The Trump administration has long advocated for lower interest rates to stimulate economic growth. Powell has resisted, maintaining that monetary policy should be driven by economic conditions. The DOJ's subpoenas are seen as a direct challenge to the Fed's policy-making autonomy.

How Did Markets React?

The U.S. Dollar Index (DXY) fell 0.34% on January 12 as the investigation news sparked a political risk premium. Investors sold U.S. dollar assets in favor of gold and other safe-haven assets. The dollar's weakening also benefited multinational exporters as their products became more competitive abroad.

Bitcoin remained volatile, trading near $90,300 as traders awaited clarity on the political conflict. The cryptocurrency failed to break through $92,000, retreating at the European market opening. Analysts noted that the market remains on edge due to the uncertainty surrounding the Fed's independence.

What Are Analysts Watching Next?

Market participants are closely monitoring the upcoming U.S. Consumer Price Index (CPI) release on January 13, 2026, as well as a Supreme Court ruling on tariffs scheduled for January 14. These developments could further influence investor sentiment.

Gold and silver prices are expected to remain underpinned by safe-haven demand if the political tensions persist. Analysts also highlight the importance of the 50-day Exponential Moving Average (EMA) for Bitcoin, currently at $91,555, as a key level to watch for further price direction.

The legal battle between the DOJ and the Federal Reserve may escalate to the Supreme Court, with potential implications for the Fed's future policy autonomy. Investors are advised to track legal developments and any shifts in the Fed's policy stance in the coming weeks.

The Fed's ability to maintain its current policy path amid political pressure will be critical in determining the trajectory of interest rates. Analysts warn that prolonged uncertainty could permanently alter perceptions of the U.S. financial system's stability.