Bitcoin and Privacy Coins Rise Amid Trump-Powell Conflict, Tether Adds $1B USDT to Tron, and DeFi Progress

Bitcoin’s price rose 2% on Sunday as Federal Reserve Chair Jerome Powell announced the DOJ had served the Fed with grand jury subpoenas and threatened a criminal indictment over his Senate testimony on building renovations in 2025 according to reports. Powell stated the action was part of a broader effort by the Trump administration to gain control over the Fed and monetary policy as reported. The conflict marks a rare escalation in the ongoing tension between Trump and Powell, with the White House pushing for more aggressive rate cuts according to analysis.

Meanwhile, Tether expanded its liquidity by minting $1 billion USDT on the Tron network on January 9, marking its first major issuance of 2026 as reported. The newly minted tokens were moved directly to Tether’s treasury, not immediately released onto exchanges according to sources. Analysts interpret this as a preparatory step to meet growing demand in the crypto market according to analysis.

Mutuum Finance, a decentralized lending platform, is nearing its V1 protocol launch and has attracted over 18,700 investors in its presale according to reports. The project has also completed a security audit with Halborn Security and is preparing for testnet deployment as reported.

Why Did This Happen?

The DOJ’s move against Powell came after months of speculation and mounting pressure from the Trump administration to influence monetary policy according to reports. Powell denied any wrongdoing and emphasized that the Fed must remain independent in setting interest rates according to statements. The subpoenas were seen as a political maneuver to exert control over the central bank according to analysis.

Tether’s large USDT mint followed a surge in demand for stablecoin liquidity on Tron, which hosts over 60% of USDT’s circulating supply according to data. The move suggests anticipation of increased trading and DeFi activity in the coming months according to analysis.

Mutuum Finance’s progress reflects growing interest in DeFi lending protocols. The project’s presale and security audit have drawn attention from both retail and institutional investors according to reports.

How Did Markets React?

Bitcoin and other risk assets were initially boosted by Powell’s public defense of Fed independence and the DOJ action according to reports. However, crypto markets remain cautious as the political uncertainty lingers according to analysis. Bitcoin held above $90,000, while Ethereum and XRP saw mixed performance according to data.

The Tether mint did not immediately affect market prices but was closely watched by traders and analysts as a sign of increased liquidity according to reports. Traders often use USDT as a base for buying Bitcoin and other cryptocurrencies, suggesting potential for further market movement according to analysis.

DeFi activity saw renewed interest as Mutuum Finance approached its V1 launch. The project’s focus on real-world applications and security has set it apart from speculative DeFi projects according to reports.

What Are Analysts Watching Next?

Analysts are closely monitoring the outcome of the DOJ’s investigation into Powell and its potential impact on Fed policy according to reports. A new Fed chair in 2026 could significantly influence rate expectations and market sentiment according to analysis.

The movement of Tether’s newly minted USDT from treasury to exchanges will also be a key indicator of liquidity conditions according to reports. Large redemptions and transfers could signal increased trading or DeFi activity in the near term according to analysis.

Mutuum Finance’s V1 protocol launch is expected to be a major milestone for the project. The success of its initial lending markets and security mechanisms will be critical for long-term adoption according to reports.

The Senate is also expected to hold hearings this week on crypto market structure legislation, which could shape the regulatory landscape for digital assets according to reports. Lawmakers aim to position the U.S. as a leader in crypto innovation according to analysis.