Catenaa, Wednesday, January 14, 2026-Bitcoin and major cryptocurrencies rose sharply Sunday as traders reacted to Federal Reserve Chair Jerome Powell warning of political pressure on the central bank amid a clash with former President Donald Trump, a news report said.
Bitcoin climbed 1.5% to $92,047 and Ethereum gained 1.99% to $3,157, while Solana led altcoins with a 4.81% jump to $142.53. Privacy-focused tokens surged, with Monero up 17.9% to $574.09 and Zcash rising 9.76% to $410.92.
The moves came after Powell revealed that the US Department of Justice had threatened criminal charges over his June 2025 congressional testimony, emphasizing the Fed’s independence in setting interest rates.
Investors interpreted the dispute as a risk to confidence in the U.S. dollar and traditional financial systems. Analysts noted that safe-haven assets like Bitcoin and gold saw simultaneous gains, with spot gold rising 1.3% to $4,569.
Strategic buying at technical support levels further bolstered crypto prices, while traders monitored updates on US tax-cut plans, regulatory developments, and the upcoming Consumer Price Index release.
Market observers cautioned that US market opening could trigger volatility due to political tensions, though broader macroeconomic conditions, including moderate inflation, rising wages, and GDP growth, continue to support risk-on sentiment.
Goldman Sachs revised its Fed rate-cut projections to June and September 2026, which analysts said could inject liquidity and sustain bullish momentum in cryptocurrencies.
Crypto markets are increasingly seen as a hedge against potential instability in traditional finance, with both institutional and retail traders reacting to political developments and macroeconomic signals.
