Bitcoin Price Prediction: Trump vs the Fed Just Escalated – Is BTC About to Explode as Trust in the Dollar Crumbles?

Bitcoin is consolidating at elevated ranges simply as confidence in US financial governance faces its sharpest take a look at in many years. On January 9, the US Department of Justice served the Federal Reserve with grand jury subpoenas tied to a felony investigation right into a $2.5 bn renovation of its Washington headquarters. The probe facilities on whether or not Jerome Powell misled lawmakers throughout June 2025 testimony earlier than the Senate Banking Committee.

In a uncommon Sunday video handle, Powell described the investigation as “unprecedented” and warned that the menace of indictment was linked to political strain to lower rates of interest quicker. He framed the transfer as a part of a broader problem to central financial institution independence, a precept designed to protect financial coverage from short-term political pursuits.

President Donald Trump, who has repeatedly criticized Powell for protecting charges in the 3.50%–3.75% vary regardless of easing in 2025, denied any involvement in the probe. Still, bipartisan backlash was swift.

Lawmakers from each events warned that the episode dangers undermining confidence in US establishments at a time when inflation stays delicate and markets are extremely leveraged to coverage credibility.

Gold, Silver, Bitcoin Respond to Fed Credibility Shock

The preliminary market response was measured, however value motion throughout belongings tells a broader story. Gold surged to file highs above $4,630 per ounce, whereas silver rallied towards $86, posting positive factors of greater than 5% in only a few periods. The US Dollar Index slipped roughly 0.4%, reflecting unease over the politicization of financial coverage.

Bitcoin, in the meantime, held agency close to $90,000–$92,000, briefly pushing above $92,000 after the information earlier than consolidating. While BTC didn’t explode larger, its resilience contrasts with previous episodes the place it traded extra like a high-beta tech inventory than a macro hedge.

Prolonged strain on Fed independence may revive debasement narratives that traditionally favor scarce, non-sovereign belongings.

Bitcoin Technical Analysis: Price Compresses Near $92K as Breakout Risk Builds

From a technical perspective, Bitcoin’s construction stays constructive. On the 4-hour chart, value is holding above a rising trendline drawn from late-December lows, with larger lows forming above $90,200.

Repeated failures close to $92,200–$92,500 have produced spinning tops and near-doji candles, signaling hesitation relatively than distribution.

Momentum helps this view. RSI has recovered from the low-40s and is stabilizing close to 55, exhibiting enhancing power with out getting into overbought territory. There is not any bearish divergence, and draw back strikes lack follow-through, suggesting consolidation relatively than reversal.

Key ranges to watch:

• Resistance: $92,200–$92,500
• Support: $90,200, then $89,200
• Upside targets: $93,900, adopted by $94,700–$95,000

Trade thought: Buy pullbacks close to $90,500–$90,200, focusing on $93,900 with extension towards $94,700–$95,000. Place a cease under $89,200 to defend in opposition to a trendline break.

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