Bitcoin Shrugs Off Powell Probe as DOJ Targets Fed Chair
The Department of Justice has launched a criminal investigation into Federal Reserve Chairman Jerome Powell, raising unprecedented concerns about the Fed’s independence. The probe—centered on allegations Powell misled Congress over a renovation project—has been dismissed by Powell as a pretext and an attempt to undermine the central bank’s autonomy. Critics warn this could politicize monetary policy, with Senator Thom Tillis vowing to block all Fed nominations in protest. Haven assets like gold and silver surged, while Bitcoin’s price rose modestly. Analysts argue the situation bolsters Bitcoin’s status as a politically neutral asset and potential hedge against politically influenced monetary policy. Experts warn that if the Fed’s independence is compromised, it would destabilize faith in the dollar and Treasury markets, increasing volatility across assets. While immediate gains for Bitcoin are unlikely, the narrative of Bitcoin as an institutional hedge could strengthen if political interference persists, potentially transforming its role in global finance. However, short-term expectations should remain measured, as Bitcoin is still largely tied to the U.S. dollar.
