On January 11, the cryptocurrency market began to rise following comments from Federal Reserve Chair Jerome Powell regarding pressure from U.S. President Donald Trump on the regulator.

In the past 24 hours, Bitcoin gained 1.5%, testing the $92,000 level. Ethereum's price increased by 2.1%, while Solana rose by 5%.

The positive trend affected nearly the entire market, but privacy coins saw the most significant gains: Monero surged by 15.3%, reaching a historic high around $596; Zcash added 9.4%.

Traders reacted to Powell's video address. The Fed Chair reported that the U.S. Department of Justice threatened him with criminal prosecution over testimony given to Congress in June 2025.

“The threat of criminal prosecution arises from the Fed setting rates based on the public interest rather than the president's preferences,” the top official stated.

His term as head of the Federal Reserve ends in May 2026.

President Trump has openly expressed dissatisfaction with Jerome Powell's actions, insisting on more aggressive rate cuts. He has repeatedly attempted to influence Fed decisions, calling for a reduction to 1% or lower.

A Safe Haven

Presto Research analyst Peter Chang told The Block that Bitcoin's rally began almost simultaneously with Powell's address. Gold also showed positive dynamics: at the time of writing, the asset rose by 1.53%, reaching $4,578.

“The price movements indicate that Powell's comments about the threat to the Fed's independence have raised concerns among investors regarding the traditional dollar-based financial system,” the expert stated.

He noted that trust in the neutrality of the dollar underpins its status as a reserve currency.

“Once society is convinced otherwise, investors will seek ways to hedge against risks in the traditional system. Gold and Bitcoin serve as such tools,” the expert added.

Kronos Research's investment director Vincent Liu commented that technical factors and strategic purchases also supported the upward momentum.

“Traders are monitoring these movements amid broad discussions about regulation, including news of a potential bill on the structure of the digital asset market to enhance transparency and liquidity,” he added.

Liu identified three key drivers for the week: Powell's conflict with the Justice Department, news about tax cut plans, and the release of the Consumer Price Index.

Macro Resilience

BTSE's Chief Operating Officer Jeff May suggested a spike in volatility at the start of the U.S. session due to political tensions.

“Given the Trump-Fed conflict, a market pullback is possible at the beginning of trading in the U.S.,” he noted.

On the other hand, CoinEx Research analyst Jeff Ko views the impact of the conflict between the Justice Department and the Fed as limited, seeing it merely as a part of the overall uncertainty.

The expert considers the current environment favorable for digital assets. Weak U.S. employment data, rising gold prices, and reduced leverage are supporting the market. Ko identifies geopolitical conditions as the main risk:

“Any escalation could significantly increase volatility and demand for safe-haven assets.”

Bitrue's research head Andri Fauzan Adziima noted the fundamental resilience of the U.S. economy. GDP growth, rising real wages, and slowing inflation create a favorable environment for investor interest in risk assets.

At the same time, Goldman Sachs adjusted its monetary policy expectations. The bank pushed back its forecast for the first rate cut from March to June 2026, with the next phase now expected in September.

“The anticipated rate cuts by the Fed, likely in June and September, will contribute to further easing of financial conditions, ensuring a liquidity influx that cryptocurrencies have historically absorbed, signaling the early stages of a sustainable bullish phase,” Adziima added.

Lastly, CryptoQuant analyst known as Arab Chain suggested a potential reversal for Bitcoin amid a decline in open interest.