Bitcoin is demonstrating resilience as the U.S. Department of Justice (DOJ) initiates an investigation into Federal Reserve Chair Jerome Powell. This development has injected uncertainty into traditional financial markets, leading some investors to view Bitcoin as a safe-haven asset.

Market Response and Price Movement

Bitcoin's price has shown a positive, albeit volatile, reaction to the news. On January 12, 2026, Bitcoin surged past $92,000 following the announcement of the DOJ's subpoena against the Federal Reserve. This increase reflected a broader market trend of investors seeking safe-haven assets amidst the turmoil. The price briefly retraced to an intraday low of $90,128 before recovering to trade above $92,000 again, driven by reports of further Bitcoin acquisitions by MicroStrategy. Currently, Bitcoin is trading around $92,120.54, with a 24-hour trading volume of $37,288,076,224.36. This represents a slight increase of 0.06% in the last 24 hours.

The DOJ Investigation and its Implications

The DOJ's investigation into Jerome Powell stems from his testimony before the Senate Banking Committee in June 2025 regarding renovations to the Fed's office buildings. Powell has characterized the investigation as a politically motivated attack on the Fed's independence, asserting that it is a consequence of the Fed setting interest rates based on economic conditions rather than political pressure. President Trump has been openly critical of Powell, advocating for more aggressive interest rate cuts. This unprecedented friction between the White House and the Fed has rattled traditional investors, contributing to the flight to safety observed in the market.

Expert Opinions and Market Outlook

Analysts have varying perspectives on the long-term impact of the DOJ investigation on Bitcoin. Some believe that the investigation introduces institutional uncertainty, which could affect Bitcoin's price behavior. CoinEx Research analyst Jeff Ko sees the conflict as just one factor among broader uncertainties and considers the overall macro environment favorable for digital assets, citing weak U.S. employment data, rising gold prices, and reduced leverage. Bitrue's head of research, Andri Fauzan Adzima, points to the fundamental resilience of the U.S. economy and anticipates that expected Fed rate cuts in June and September will further ease financial conditions, benefiting cryptocurrencies.

Bitcoin's Potential as a Hedge

The current situation underscores Bitcoin's potential as a hedge against traditional market instability. As concerns about the Fed's independence and U.S. monetary policy intensify, some investors are turning to Bitcoin as a store of value. This behavior aligns with the perception of Bitcoin as "digital gold," a store of value rather than just a currency.

Key Factors to Watch

• The outcome of the DOJ investigation: The resolution of the investigation into Jerome Powell will likely influence market sentiment and investor confidence.
• Federal Reserve policy: Any changes in the Fed's monetary policy in response to political pressure could have significant implications for the broader economy and the cryptocurrency market.
• Geopolitical risks: Escalating geopolitical tensions could further amplify market volatility and drive demand for safe-haven assets.
• Institutional adoption: Continued institutional investment in Bitcoin, such as MicroStrategy's treasury expansion, could provide further support for its price.

While the DOJ investigation introduces uncertainty, Bitcoin's recent price action suggests that it is currently viewed as a potentially attractive asset during times of economic and political instability. However, it is crucial to monitor the above factors to gain a comprehensive understanding of the future trajectory of Bitcoin's price.