Bitcoin edged higher during Asian trading on Monday, holding close to last week’s levels as investor risk appetite remained fragile amid escalating tensions between U.S. President Donald Trump and the Federal Reserve.
Ongoing geopolitical uncertainty, combined with caution ahead of key U.S. economic data due later this week, continued to keep markets on edge. While technology stocks rallied on improving sentiment around artificial intelligence, Bitcoin lagged that move. Although the world’s largest cryptocurrency has historically traded in step with tech shares, this correlation has gradually weakened over the past year.
At the same time, the absence of clear positive catalysts for the crypto sector has kept Bitcoin under pressure through late 2025 and early 2026. On Monday, Bitcoin rose 1.5% to $92,094.4 by 00:51 ET (05:51 GMT).
Fed probe and geopolitics weigh on crypto sentiment
Stronger gains in Bitcoin were capped by renewed pressure on risk appetite. Federal Reserve Chair Jerome Powell said the central bank has been subpoenaed by the Department of Justice and could face a potential criminal indictment related to renovations at the Fed’s headquarters.
Powell suggested the investigation was politically motivated, pointing to repeated demands from the Trump administration for aggressive interest rate cuts. His remarks triggered declines in U.S. stock futures and prompted a shift toward traditional safe havens such as gold and other precious metals. Investors also grew concerned that intensifying friction between Trump and the Fed could threaten the central bank’s independence, especially as Trump is expected to name Powell’s successor in the near term.
Geopolitical risks added to the cautious mood. Trump renewed calls for the U.S. to take control of Greenland, a scenario that unsettled markets further following Washington’s recent incursion into Venezuela. Elsewhere, tensions between China and Japan showed little sign of easing, while attention remained on widespread protests in Iran and ongoing fighting between Russia and Ukraine.
Altcoins edge higher ahead of US inflation data
Broader cryptocurrency prices also moved modestly higher alongside Bitcoin, but remained confined to recent ranges. Investor focus this week is firmly on U.S. consumer price index data for December, due on Tuesday, which is expected to shape interest rate expectations.
Ether, the world’s second-largest cryptocurrency, climbed 2% to $3,160.47, while XRP slipped 0.6%. Solana gained 5%, and Cardano advanced 2%, while BNB fell 0.6%.
Among meme tokens, Dogecoin rose 0.5%, while the $TRUMP token added 0.7%.
