The US Department of Justice has launched a criminal investigation into Federal Reserve Chair Jerome Powell. Powell dismissed the inquiry as a “pretext” aimed at pressuring Fed monetary policy decisions. The development has drawn political backlash, with Senate Banking Committee member Thom Tillis condemning the investigation as an attack on central bank independence. Analysts note the probe introduces heightened uncertainty into macroeconomic planning, influencing risk assets and safe-haven flows.
In early trading, traditional haven assets such as gold and silver rose sharply, while Bitcoin posted a more moderate increase of 1.7% to roughly $92,000. Market observers suggest that Bitcoin’s relative neutrality could strengthen its narrative as a hedge against politically influenced monetary policy. Tim Sun, senior researcher at HashKey Group, highlighted that any compromise of the Fed’s autonomy could embed political risk into US dollar markets, increasing demand for decentralized, non-sovereign assets.
Experts caution that short-term volatility may dominate as investors adjust to potential disruptions in rate expectations and the broader yield curve. However, if political pressure undermines Fed credibility, Bitcoin could evolve into a recognized institutional hedge.
