Bitcoin Price Forecast: Trump and the Fed Intensify – Is BTC Poised for a Surge as Confidence in the Dollar Diminishes?

Bitcoin is stabilizing at high levels just as faith in US monetary management encounters its most severe challenge in decades. On January 9, the US Department of Justice issued grand jury subpoenas to the Federal Reserve related to a criminal investigation into a $2.5 billion refurbishment of its Washington headquarters. The inquiry focuses on whether Jerome Powell misled legislators during his June 2025 testimony before the Senate Banking Committee.

In an unusual Sunday video address, Powell characterized the investigation as “unprecedented” and cautioned that the risk of indictment was associated with political pressure to expedite interest rate cuts. He presented this situation as part of a larger threat to the independence of the central bank, a principle intended to protect monetary policy from short-term political motives.

President Donald Trump, who has frequently criticized Powell for maintaining rates within the 3.50%–3.75% range despite easing in 2025, denied any involvement in the investigation. Nevertheless, bipartisan criticism was immediate.

Legislators from both parties cautioned that this incident could undermine trust in US institutions at a time when inflation remains delicate and markets are highly dependent on policy credibility.

Gold, Silver, Bitcoin React to Fed Credibility Shock

The initial response from the markets was measured, but price movements across various assets tell a broader narrative. Gold soared to unprecedented levels above $4,630 per ounce, while silver surged toward $86, achieving gains of over 5% in just a few sessions. The US Dollar Index fell by approximately 0.4%, indicating discomfort regarding the politicization of monetary policy.

Bitcoin, on the other hand, remained stable around $90,000–$92,000, briefly surpassing $92,000 after the announcement before stabilizing. While BTC did not dramatically increase, its robustness contrasts with previous instances where it behaved more like a high-beta tech stock than a macro hedge.

Ongoing pressure on Fed independence could revive narratives of debasement that have historically favored scarce, non-sovereign assets.

Bitcoin Technical Analysis: Price Compresses Near $92K as Breakout Risk Builds

From a technical standpoint, Bitcoin’s structure continues to appear positive. On the 4-hour chart, the price is maintaining above a rising trendline drawn from late-December lows, with higher lows emerging above $90,200.

Repeated failures near $92,200–$92,500 have created spinning tops and near-doji candles, indicating hesitation rather than distribution.

Bitcoin Price Chart – Source: Tradingview

Momentum supports this analysis. The RSI has rebounded from the low-40s and is stabilizing around 55, indicating improving strength without entering overbought territory. There is no bearish divergence, and downward movements lack continuation, suggesting consolidation rather than reversal.

Key levels to monitor:

• Resistance: $92,200–$92,500
• Support: $90,200, then $89,200
• Upside targets: $93,900, followed by $94,700–$95,000

Trade idea: Consider buying on pullbacks near $90,500–$90,200, aiming for $93,900 with potential extension towards $94,700–$95,000. Set a stop below $89,200 to safeguard against a trendline break.

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The post Bitcoin Price Prediction: Trump vs the Fed Just Escalated – Is BTC About to Explode as Trust in the Dollar Crumbles? appeared first on Cryptonews.