{"id":67444,"date":"2026-01-13T05:31:49","date_gmt":"2026-01-13T05:31:49","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=67444"},"modified":"2026-01-13T05:31:49","modified_gmt":"2026-01-13T05:31:49","slug":"bitcoin-holds-firm-as-trump-fed-clash-tests-its-safe-haven-story","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=67444","title":{"rendered":"Bitcoin Holds Firm as Trump\u2013Fed Clash Tests Its Safe\u2011Haven Story"},"content":{"rendered":"<div>\n<p>Bitcoin went through a political stress test after Federal Reserve Chair Jerome Powell said the Justice Department had threatened him with criminal charges during a growing conflict with President Donald Trump.<\/p>\n<p>Bitcoin\u2019s price dropped to around the $90k level on the day before regaining the $91k price level as of today, which is a small move for a story that stirred tension in Washington. The timing stands out as investors continue to debate whether Bitcoin really holds up when governments clash.<\/p>\n<p>There is a bigger question sitting underneath all of this: When politics start pushing on money policy, does Bitcoin act like a safe place to park value, or does it behave like any other risky asset?<\/p>\n<h2>Why Is the Fed Fighting With Trump?<\/h2>\n<p><span data-preserver-spaces=\"true\">The Federal Reserve controls US monetary policy. You can think of it as the country\u2019s temperature control for money, raising or lowering interest rates to manage inflation and growth.<\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Video message from Federal Reserve Chair Jerome H. Powell: <a href=\"https:\/\/t.co\/5dfrkByGyX\" rel=\"nofollow\" target=\"_blank\">https:\/\/t.co\/5dfrkByGyX<\/a> <a href=\"https:\/\/t.co\/O4ecNaYaGH\" rel=\"nofollow\" target=\"_blank\">pic.twitter.com\/O4ecNaYaGH<\/a><\/p>\n<p>\u2014 Federal Reserve (@federalreserve) <a href=\"https:\/\/twitter.com\/federalreserve\/status\/2010510130970849338?ref_src=twsrc%5Etfw\" rel=\"nofollow\" target=\"_blank\">January 12, 2026<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><span data-preserver-spaces=\"true\">Powell says the Justice Department opened a criminal investigation linked to renovations at the Fed\u2019s buildings, and he believes the move is political pressure. Trump has criticized Powell for not cutting rates faster and <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.reuters.com\/business\/finance\/feds-powell-says-administration-has-threatened-criminal-indictment-over-his-2026-01-12\/\" target=\"_blank\" rel=\"noopener nofollow\"><span data-preserver-spaces=\"true\">says he knows nothing<\/span><\/a><span data-preserver-spaces=\"true\"> about the investigation. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">This kind of conflict tends to catch the market\u2019s attention because interest rates affect mortgages, savings accounts, stock prices, and demand for Bitcoin.<\/span><\/p>\n<h2>What Does This Mean for Bitcoin Holders?<\/h2>\n<p><span data-preserver-spaces=\"true\">Bitcoin has no CEO <\/span><span data-preserver-spaces=\"true\">and no<\/span><span data-preserver-spaces=\"true\"> central authority controlling how <\/span><span data-preserver-spaces=\"true\">much exists<\/span><span data-preserver-spaces=\"true\">.<\/span> <span data-preserver-spaces=\"true\">That idea <\/span><span data-preserver-spaces=\"true\">sits<\/span><span data-preserver-spaces=\"true\"> at the core of why people buy it, and moments like this put <\/span><span data-preserver-spaces=\"true\">that idea<\/span><span data-preserver-spaces=\"true\"> to the test.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">So far, the reaction has been calm. A 1% rise suggests traders see this as background noise rather than a reason to panic, which lines up with <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/99bitcoins.com\/news\/altcoins\/crypto-market-news-today-january-12-bitcoin-price-run-as-powell-said-doj-threatens-the-federal-reserve-us-dollar-weakens\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">how Bitcoin prices have behaved during past headlines tied to the Fed.<\/span><\/a><\/p>\n<p><span data-preserver-spaces=\"true\">When political pressure leads to looser money or weaker trust in institutions, Bitcoin often attracts more interest. That is why some analysts see situations like this as real-world tests of Bitcoin\u2019s role as a safe place to store value.<\/span><\/p>\n<h2>Political Pressure Has Broken Currencies Before<\/h2>\n<p><span data-preserver-spaces=\"true\">This pattern has played out before. In the 1970s, President Nixon pushed the Fed to keep rates low ahead of an election, and inflation followed. In Turkey, political shakeups at the central bank helped push inflation to around <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.theguardian.com\/business\/2026\/jan\/11\/justice-department-opens-investigation-into-federal-reserve-as-trump-ramps-up-campaign-against-central-bank\" target=\"_blank\" rel=\"noopener nofollow\"><span data-preserver-spaces=\"true\">80% in 2022<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n<div class=\"chart crypto-chart-instance\" id=\"crypto_chart_6965d77b07b33\" data-coin-id=\"btc\">\n<div class=\"chart__header\">\n<div class=\"chart__info\">\n<div class=\"chart__info-icon\">\n\t\t\t\t<img id=\"crypto_chart_6965d77b07b33-chart__info-icon-img\"><\/p>\n<div class=\"chart__info-name\" id=\"crypto_chart_6965d77b07b33-chart__info-name\"><\/div>\n<div class=\"chart__info-symbol\" id=\"crypto_chart_6965d77b07b33-chart__info-symbol\"><\/div>\n<\/p><\/div>\n<div class=\"chart__info-current\">\n<div class=\"chart__info-price\" id=\"crypto_chart_6965d77b07b33-chart__info-price\"><\/div>\n<div class=\"chart__info-change\" id=\"crypto_chart_6965d77b07b33-chart__info-change\"><\/div>\n<\/p><\/div>\n<div class=\"chart__info-extra\">\n<div class=\"chart__info-label\">Market Cap<\/div>\n<div class=\"chart__info-marketcap\" id=\"crypto_chart_6965d77b07b33-chart__info-marketcap\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"chart__controls\">\n<div class=\"chart__controls-group\">\n\t\t\t\t<button class=\"chart__button chart__button--24h\" id=\"crypto_chart_6965d77b07b33-btn-24h\">24h<\/button><br \/>\n\t\t\t\t<button class=\"chart__button chart__button--7d\" id=\"crypto_chart_6965d77b07b33-btn-7d\">7d<\/button><br \/>\n\t\t\t\t<button class=\"chart__button chart__button--30d\" id=\"crypto_chart_6965d77b07b33-btn-30d\">30d<\/button><br \/>\n\t\t\t\t<button class=\"chart__button chart__button--1y\" id=\"crypto_chart_6965d77b07b33-btn-1y\">1y<\/button><br \/>\n\t\t\t\t<button class=\"chart__button chart__button--all-time\" id=\"crypto_chart_6965d77b07b33-btn-all-time\">All Time<\/button>\n\t\t\t<\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"chart__container\">\n\t\t<canvas class=\"chart__canvas\" id=\"crypto_chart_6965d77b07b33-cryptoChart\"><\/canvas>\n\t<\/div>\n<\/div>\n<p><span data-preserver-spaces=\"true\">Bitcoin was designed with <\/span><span data-preserver-spaces=\"true\">these situations<\/span><span data-preserver-spaces=\"true\"> in mind. When confidence in money managers fades, assets with fixed supply start to look appealing.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">That also helps explain why Bitcoin often reacts to Fed drama while many smaller coins lag behind, <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/99bitcoins.com\/news\/altcoins\/crypto-market-news-today-january-6-bitcoin-price-hits-94000-as-federal-reserve-pumps-liquidity\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">a pattern that has repeated during past market moves tied to changes in liquidity.<\/span><\/a><\/p>\n<h2>Risk Check: Bitcoin Is Not Immune<\/h2>\n<p><span data-preserver-spaces=\"true\">Bitcoin still behaves like a tech stock during major market sell-offs. When fear spreads, investors sell whatever they can, <\/span><span data-preserver-spaces=\"true\">and that includes<\/span><span data-preserver-spaces=\"true\"> Bitcoin.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">There is also a political angle to watch. Trump has spoken positively about Bitcoin and has even backed the idea of a US Bitcoin reserve. Critics argue that heavy government involvement <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.forbes.com\/sites\/beccabratcher\/2025\/06\/04\/trump-turned-bitcoin-into-a-political-weapon-heres-why-it-matters\/\" target=\"_blank\" rel=\"noopener nofollow\"><span data-preserver-spaces=\"true\">undermines Bitcoin\u2019s original goal of remaining neutral<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">For everyday investors, the takeaway stays simple. View Bitcoin as something to hold over time, not something to trade on headlines. Keep positions reasonable and never risk money needed for rent or bills.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">If the conflict around the Fed grows, Bitcoin will keep being tested in public. Each episode adds another data point on how it behaves when politics and money collide.<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">DISCOVER:\u00a0<\/span><a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/next-crypto-to-explode\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\"><span data-preserver-spaces=\"true\">20+ Next Crypto to Explode in 2025\u00a0<\/span><\/a><\/strong><\/p>\n<p><strong><span data-preserver-spaces=\"true\">Follow\u00a0<\/span><a class=\"general-link\" href=\"https:\/\/x.com\/99BitcoinsHQ\" target=\"_blank\" rel=\"nofollow noopener\"><span data-preserver-spaces=\"true\">99Bitcoins on X<\/span><\/a><span data-preserver-spaces=\"true\"> for the Latest Market Updates and\u00a0<\/span><a class=\"general-link\" href=\"https:\/\/www.youtube.com\/@99bitcoins\" target=\"_blank\" rel=\"nofollow noopener\"><span data-preserver-spaces=\"true\">Subscribe on YouTube<\/span><\/a><span data-preserver-spaces=\"true\"> for Daily Expert Market <\/span><span data-preserver-spaces=\"true\">Analysis<\/span><span data-preserver-spaces=\"true\">\u00a0\u00a0<\/span><\/strong><\/p>\n<p>The post <a href=\"https:\/\/99bitcoins.com\/news\/bitcoin-btc\/bitcoin-trump-fed-clash-test\/\">Bitcoin Holds Firm as Trump\u2013Fed Clash Tests Its Safe\u2011Haven Story<\/a> appeared first on <a href=\"https:\/\/99bitcoins.com\/\">99Bitcoins<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin went through a political stress test after Federal Reserve Chair Jerome Powell said the Justice Department had threatened him with criminal charges during a growing conflict with President Donald Trump. Bitcoin\u2019s price dropped to around the $90k level on the day before regaining the $91k price level as of today, which is a small [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-67444","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/67444","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=67444"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/67444\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=67444"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=67444"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=67444"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}