Bitcoin Shows Strength As Us Doj Mulls Fed Chair Investigation:... (2026)
Bitcoin rallied to $92,000 as Federal Reserve chair Jerome Powell spoke about a potential DOJ investigation into the Fed. Will BTC's strength hold?
Institutional investors selling Bitcoin is visible through the Bitcoin ETFs recording $1.38 billion in net outflows across four trading sessions.
BTC futures data shows a neutral 5% basis rate, well below the 10% level that typically defines a true bullish breakout.
Bitcoin (BTC) price briefly jumped above $92,000 on Monday after US federal prosecutors opened a criminal investigation into Federal Reserve Chair Jerome Powell. Despite the odd outcome, Bitcoin traders remain skeptical due to exchange-traded fund outflows and weak demand for bullish leveraged BTC positions.
Despite the recent rebound, Bitcoin is still down 23% since October 2025, while gold and silver reached all-time highs in 2026. This divergence has led traders to question whether the digital store-of-value narrative is losing strength. As a result, even if Bitcoin rallies another 14% toward $105,000, investors may hesitate to turn bullish, particularly as analysts grow less confident that the US will deliver further economic stimulus in the near term.
Goldman Sachs no longer expects an interest rate cut in March, citing sticky inflation and resilient labor market data despite temporary slowdowns. US President Donald Trump has openly criticized the Fed for keeping interest rates elevated, even as inflation remained above the 2% target throughout the second half of 2025. Powell’s time as Fed chair ends in April, opening the door for a successor potentially more inclined toward looser monetary policy.
Powell is being investigated over the Fed’s building renovation project, prompting analysts to question whether central bank independence could be at risk—a scenario that could favor alternative scarce assets such as Bitcoin. Powell said the action should be viewed within the broader context of the Trump administration’s threats.
Even as Bitcoin reclaimed $91,000 on Monday, traders showed little interest in turning bullish, according to BTC derivatives data.
Bitcoin’s risk profile appears largely unchanged by the power struggle between the Fed and the Trump administration, as the BTC futures annualized premium, or basis rate, remained near a neutral-to-bearish 5%. Periods of bullish sentiment are typically characterized by BTC futures trading at a 10% premium or more relative to spot markets.
More importantly, Bitcoin spot ETFs recorded $1.3
Source: CoinTelegraph
