Crypto Rally Follows Criminal Probe Into Fed Chair Jerome Powell
Cryptocurrency prices rose after news that a criminal investigation has begun into U.S. Federal Reserve Chair Jerome Powell. The global crypto market cap climbed roughly 2% in 24 hours to about $3.11 trillion. Bitcoin led gains, touching an intraday high near $92,000 and fueling speculation of a move toward $100,000. Ethereum traded near $3,100 (up ~1%), XRP held around $2, and Solana rose ~2%. Among top-20 coins, Monero posted the largest 24-hour jump (~15%) toward $600, while Zcash gained nearly 7%. The DOJ reportedly threatened to indict Powell related to testimony about Fed building renovation costs; Powell called the probe unprecedented and politically motivated. FedWatch places January rate-cut odds at about 5% amid the fallout. Key keywords: Jerome Powell investigation, crypto rally, Bitcoin price, Ethereum, XRP, market capitalization.
Bullish
The news triggered a short-term bullish reaction: major cryptocurrencies (BTC, ETH, XRP, SOL) posted gains and the total market cap rose ~2%. Political or regulatory turmoil that casts doubt on central-bank stability can weaken fiat-rate expectations and push risk assets like crypto higher as traders price in looser monetary policy or safe-haven/speculative flows. Bitcoin’s move toward $92k with increased volume suggests momentum trading and FOMO could amplify near-term upside. However, this is largely sentiment-driven and may be volatile—if investigations deepen or create wider institutional uncertainty, markets could reverse. Historically, political shocks and policy uncertainty (e.g., sudden regulatory actions or geopolitical events) have produced immediate spikes in crypto off risk-on flows, followed by pullbacks as fundamentals reassert. Therefore expect continued short-term volatility with a bullish bias while newsflow remains favorable; long-term impacts depend on legal outcomes, Fed policy shifts, and macroeconomic reaction.