Bitcoin’s position as a non-sovereign financial asset is drawing renewed attention after reports confirmed a criminal investigation into US Federal Reserve Chair Jerome Powell. Analysts suggest the development could introduce additional risk premia for Bitcoin, as concerns grow over political influence on monetary policy and broader market stability.
Federal prosecutors are reportedly examining testimony Powell delivered to a Senate committee regarding renovations of Federal Reserve buildings. In a public statement, Powell said the investigation stems from the Fed’s commitment to setting interest rates based on economic assessments, rather than political demands. Former President Donald Trump has repeatedly criticized Powell for resisting calls to aggressively cut interest rates.
Market analysts note that the investigation creates short-term uncertainty for traditional risk assets, particularly US equities. However, they argue that any systemic correction in stock markets could strengthen demand for Bitcoin, which operates outside government and central bank control.
When confidence in central bank independence and dollar credibility weakens, decentralized assets tend to attract narrative-driven capital inflows. Over time, sustained political interference could further reinforce Bitcoin’s appeal as a hedge against sovereign risk.
Matrixport in a Monday X post;
Bitcoin posted modest gains over the past 24 hours, while privacy-focused cryptocurrencies recorded sharper moves. Meanwhile, sentiment indicators suggest improving market psychology, even as large institutional traders remain cautious in the near term.
The Powell investigation underscores how political dynamics can reshape asset narratives, potentially strengthening Bitcoin’s role in periods of institutional uncertainty.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.