Cryptocurrency prices moved higher today as political tensions in the United States spilled into global financial markets, driving investors toward alternative assets amid growing uncertainty around monetary policy.
The total cryptocurrency market capitalization climbed roughly 1.5% to $3.2 trillion, with Bitcoin leading gains while several major altcoins followed.
At the time of writing, Bitcoin was trading near $92,054, up 1.8% over the past 24 hours. Solana advanced 5.2% to $142, Zcash jumped 10% to $414, and Bittensor gained 3.2% to $290.
Despite the price recovery, overall market sentiment remains fragile. The Crypto Fear & Greed Index slipped two points to 27, keeping sentiment firmly in the “Fear” zone as traders balance short-term momentum against broader macro risks.
Derivatives data reflected heightened activity. According to CoinGlass, liquidations surged 136% to $165 million over the past day, while total open interest edged higher by 0.47% to $139 billion. The increase suggests renewed speculative positioning, though leverage-driven volatility remains a concern.
Trump–Powell clash rattles traditional markets
The crypto rally followed a sharp escalation in tensions between U.S. President Donald Trump and Jerome Powell, chair of the Federal Reserve.
Powell revealed that the U.S. Justice Department had issued grand jury subpoenas related to his congressional testimony over Federal Reserve building renovations. He described the move as political pressure linked to the Fed’s refusal to cut interest rates more aggressively.
Trump has repeatedly criticized Powell’s rate policy and has openly discussed replacing him when his term ends in 2026. In response, Powell reaffirmed the Fed’s independence, stating that political demands do not influence monetary policy decisions.
The dispute unsettled traditional markets. The U.S. dollar weakened, stock futures declined, and gold surged to fresh record highs. Cryptocurrencies benefited from the turbulence, attracting renewed buying interest as investors looked for assets outside the traditional financial system.
Analysts see short-term upside but warn of longer-term risks
On-chain analyst Willy Woo offered a cautiously optimistic outlook. In a recent post, Woo said his models indicate investor flows bottomed in late December and have improved steadily since, potentially supporting Bitcoin through late January and February.
He noted that futures market liquidity has recovered after months of weakness, a pattern also seen during the later stages of the 2021 cycle. However, Woo warned that since early 2025, liquidity growth has lagged behind price momentum.
Without stronger long-term spot buying, he expects increased risk later in 2026. Woo added that Bitcoin must convincingly challenge the $98,000 to $100,000 resistance zone before any discussion of sustained upside becomes credible.
For now, crypto’s gains appear driven more by uncertainty in traditional markets than a decisive shift in long-term risk appetite. As political pressure on monetary policy intensifies and global liquidity remains constrained, analysts expect volatility across digital assets to remain elevated.
