Bitcoin Surpasses $91,000 as Criminal Investigation Looms into Fed Chairman

Bitcoin price rose above the $91,000 level to trade at $91,673 as of 2:02 a.m. EST, after Jerome Powell said in a statement that the U.S. Department of Justice had threatened to file charges against him.

However, BTC remains capped in the $90,000-$94,000 range since late November, with the recent rise above $91,000 suggesting that the price could further rally up to the $94,000 resistance.

As investors view a move against Powell as a step by the Trump administration toward replacing him, can the price of BTC rise?

Federal Reserve Chairman Powell under criminal investigation

The U.S. Attorney’s Office for the District of Columbia has opened a criminal investigation ” to Federal Reserve Chairman Jerome Powell, focusing on the Fed’s renovation of the central bank’s headquarters in Washington and the veracity of his congressional testimony on the project.

Video message from Federal Reserve Chairman Jerome H. Powell: pic.twitter.com/O4ecNaYaGH

– Federal Reserve (@federalreserve) January 12, 2026

“On Friday, the Justice Department served the Federal Reserve with grand jury subpoenas, threatening it with criminal indictments related to my testimony before the Senate Banking Committee last June,” Powell said.

The Department of Justice (DOJ) investigation is another legal front against Powell, whom President Trump has repeatedly attacked for resisting the demand for a drastic cut in interest rates. As a result, Trump continued to threaten to fire the Fed chairman.

However, Powell reiterates that the DOJ’s action must be seen in its broader political context within the Trump administration. According to Powell, the threat of a criminal investigation is directly linked to monetary policy decisions.

“These are pretexts. The threat of criminal prosecution is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the president’s preferences,” he said.

Powell has now said he will continue to carry out his duties without bowing to pressure. Powell’s term ends in May 2026 and he may remain on the Fed board until 2028, leaving Trump’s next president choice as an imminent catalyst for rates, the dollar and the macroeconomic supply of Bitcoin.

According to the BTC/USD daily chart analysis, the price of BTC is currently trading near $91,600 with price action hitting a resistance zone between $93,000 and $94,000.

Historical price action shows multiple rejections in this area, but the recent formation of higher lows suggests increasing bullish pressure and potential near-term rally.

Technical data is starting to support a bullish rally. Bitcoin has reclaimed the 50-day simple moving average (SMA) ($89,611), which now serves as short-term dynamic support.

However, BTC remains well below the 200-day SMA near $106,184, keeping the broader trend corrective rather than fully bullish. The 50-day SMA, which has flattened and curved upward, reflects improving momentum, while the 200-day SMA remains a major hurdle.

Meanwhile, the Relative Strength Index (RSI) is trading around 56, holding above the neutral level of 50. This indicates strengthening bullish momentum without entering overbought conditions, leaving room for further upside if buyers remain in control.

The Moving Average Convergence Divergence (MACD) has also turned positive, with the MACD line moving above the signal line and the histogram expanding. This bullish crossover supports the bullish momentum sentiment and aligns with the recovery structure on the chart.

As long as Bitcoin remains above the $90,000 support zone, the technical setup favors a continuation towards the $94,000 resistance zone.

On the other hand, if BTC falls below the 50-day SMA and sustains a move below $89,000, the short-term bullish bias would be invalidated, which could, in turn, expose BTC to a pullback towards the $87,000 support region.

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