DOJ Investigates Fed Renovation, Bitcoin and Gold React Differently

The Department of Justice issued subpoenas to the Federal Reserve regarding a $2.5 billion renovation, prompting Fed Chair Jerome Powell to defend the institution's independence. This has sparked debate about Bitcoin as a hedge against political interference in monetary policy.

Powell suggests the investigation is politically motivated, linked to interest rates set for public interest rather than presidential preferences.
Gold prices rose by 1.78% to $4,588.77 per ounce, while Bitcoin gained 1.5%, reaching around $92,000.
Crypto analyst Will Clemente sees this environment as ideal for Bitcoin's purpose amid rising geopolitical risks.

ETF Data Challenges Hedge Narrative

Bitcoin ETFs experienced $431 million in withdrawals in early January 2026, following $4.57 billion outflows in late 2025.
These trends predate the Powell probe and question the narrative of institutional demand driving price increases.

Crypto-Friendly Fed Chair Candidate Leads Odds

Kevin Hassett leads betting markets for next Fed chair with 43% odds, followed by Kevin Warsh at 41%.
Hassett holds significant Coinbase stock and has served on its advisory council.
Predictions suggest Bitcoin could hit $120,000-$170,000 in 2026, though current conditions favor gold.