๐ข Crypto Market Update โ Jan 12, 2026
Fed developments driving volatility in crypto markets:
1๏ธโฃ Powell defends Fed independence amid DOJ probe
Federal Reserve Chair Jerome Powell revealed that the DOJ has subpoenaed the Fed and threatened legal action over his testimony โ a rare and politically charged move. Powell called the probe an attempt to pressure the Fed into looser monetary policy.
Market reaction: The U.S. dollar and equities faced pressure, while Bitcoin ($BTC) and gold are being treated as โsafe havens,โ sending crypto prices higher.
2๏ธโฃ Fed rate expectations fueling crypto swings
Traders are closely watching signals on timing and size of rate cuts. Some Fed commentary suggests cuts may arrive later than expected, which could temper short-term optimism for risk-sensitive assets like crypto.
3๏ธโฃ Macro & Fed events remain short-term catalysts
Scheduled Fed speeches and data releases this week could continue to move crypto markets โ making policy expectations a key driver of volatility.
4๏ธโฃ Dollar weakness & Trump-Fed tensions boost crypto flows
Concerns over political pressure on the Fed are adding to dollar weakness, helping $BTC and altcoins climb as traders consider crypto a hedge.
Why this matters for crypto:
Monetary policy cues: Hawkish or cautious Fed comments shift rate-cut expectations, affecting liquidity and risk appetite.
Market positioning: Traders adjust ahead of Fed speak, amplifying volatility.
Risk sentiment: Political pressure on the Fed signals macro uncertainty, driving flows into perceived hedges like Bitcoin.
#CryptoVolatility #FedWatch #BitcoinSafeHaven #MacroCrypto