The cryptocurrency market surged on January 11 following comments from Jerome Powell about pressure from Trump, with Bitcoin and privacy coins seeing significant gains.
The cryptocurrency market experienced a notable uptick on January 11, following remarks from Federal Reserve Chair Jerome Powell regarding pressure from President Donald Trump. Bitcoin rose by 1.5%, nearing the $92,000 mark, while Ethereum and Solana saw increases of 2.1% and 5%, respectively.
Privacy coins, in particular, demonstrated remarkable performance, with Monero surging by 15.3% to reach around $596, a record high, and Zcash climbing by 9.4%.
Traders responded to Powell's address, where he disclosed that the U.S. Department of Justice had threatened him with criminal charges over his testimony to Congress in June 2025. Powell emphasized that such threats stem from the Fed prioritizing public interest over presidential preferences.
“The threat of criminal prosecution arises from the Fed setting rates based on the public interest rather than the president's preferences,” Powell stated.
Powell's tenure as Fed Chair concludes in May 2026. Trump's dissatisfaction with Powell's policies has been vocal, as he advocates for more aggressive rate cuts, pushing for reductions to 1% or lower.
Market Reactions
Analysts noted that Bitcoin's increase coincided with Powell's speech, and gold also performed well, rising by 1.53% to $4,578. Peter Chang from Presto Research pointed out that Powell's comments have sparked investor concerns over the stability of the dollar-based financial system, driving interest in gold and Bitcoin as safe-haven assets.
“Once society is convinced otherwise, investors will seek ways to hedge against risks in the traditional system. Gold and Bitcoin serve as such tools,” Chang remarked.
Vincent Liu from Kronos Research highlighted that technical factors and strategic purchases are propelling the market upward. He identified three major influences this week: Powell's conflict with the Justice Department, tax cut discussions, and the upcoming Consumer Price Index release.
Economic Outlook
BTSE COO Jeff May warned of potential volatility at the start of U.S. trading due to the ongoing political tensions. Conversely, CoinEx Research analyst Jeff Ko believes that the conflict's impact on the market is limited, viewing it as part of broader uncertainties while maintaining a positive outlook for digital assets due to weak employment data and rising gold prices.
“Any escalation could significantly increase volatility and demand for safe-haven assets,” Ko cautioned.
Furthermore, Bitrue's Andri Fauzan Adziima pointed to the U.S. economy's fundamental resilience, highlighting GDP growth and rising real wages as favorable factors for risk assets. Goldman Sachs has also revised its monetary policy forecast, delaying expected rate cuts from March to June 2026, with the next phase anticipated in September.
“The anticipated rate cuts by the Fed will contribute to further easing of financial conditions, ensuring a liquidity influx that cryptocurrencies have historically absorbed,” Adziima noted.
Lastly, CryptoQuant's Arab Chain suggested that Bitcoin might face a reversal amid a decline in open interest, adding to the complex dynamics of the current market.
