Bitcoin Price Jumps as Fed Chair Defends Independence

The Bitcoin price has surged 2% in the last 24 hours to trade at $91,279 as Federal Reserve Chair Jerome Powell strongly criticized the Trump administration over a newly launched criminal investigation, warning that it threatens the central bank’s independence in setting interest rates.

Powell said the probe is a direct response to the Fed’s refusal to follow President Donald Trump’s demands for rate cuts, arguing that monetary policy must be based on economic data, not political pressure.

The investigation was opened by the U.S. attorney for Washington, DC, and focuses on renovations to the Federal Reserve’s headquarters. Prosecutors are examining whether Powell misled Congress about the scale and cost of the project, according to a report by The New York Times.

Trump–Powell Clash Fuels Fed Independence Debate

The probe comes after Trump repeatedly attacked Powell for keeping interest rates higher than the president preferred. Trump has long criticized the Fed’s renovation plans and has publicly threatened to fire Powell. He previously attempted to remove Fed Governor Lisa Cook over mortgage fraud allegations, but the Supreme Court blocked the move. These actions, Powell said, form part of a broader campaign to intimidate the central bank.

While stressing his respect for the rule of law, Powell said the investigation should be viewed in the context of sustained political pressure on the Fed. He warned that the real issue is whether the institution will be allowed to continue setting interest rates based on evidence and economic conditions, or whether policy will be shaped by political influence.

Powell’s term as Fed chair ends in May, and Trump has already lined up several loyalists as potential replacements. Many of them have openly supported cutting interest rates. Kevin Hassett, a top Trump economic adviser and the leading candidate to replace Powell, has claimed that Trump’s personal views would not influence Fed decisions if he took over.

Bitcoin Poised for Uptrend After Key Support Holds

The Bitcoin price is currently trading around $91,815, indicating an early bullish reversal on the 4-hour chart. After hitting resistance near $94,000, the market retraced and entered a consolidation phase around $90,000, forming a short-term support zone.

A major support zone around $86,000–$87,000 has held firm during previous dips, acting as a safety net for bulls and limiting further downside in the near term. Earlier in January, Bitcoin broke above a horizontal resistance near $90,000, confirming a bullish breakout.

The chart also highlights a small rectangle, showing buyers successfully defending the level. If this support holds, Bitcoin could resume its upward movement toward the next resistance zone.

BTCUSD Chart Analysis Source: Tradingview

The RSI (14) stands at approximately 61.75, signaling strengthening bullish momentum while remaining below the overbought threshold of 70. This suggests there is room for further upward movement before the market becomes overextended.

The yellow curved line on the chart represents the projected bullish trajectory if momentum continues. Should Bitcoin sustain above the consolidation zone, resistance levels near $94,000–$95,000 could be tested.

Bitcoin is building a solid base for a bullish reversal, supported by a strong major support zone. While short-term pullbacks remain possible, the outlook favors further upward movement.