Bitcoin experienced volatility as concerns over the Federal Reserve's independence triggered market risk aversion. According to QCP Capital, Bitcoin, gold, and silver initially rose in early Asian trading due to a weakening US dollar. The market reacted to the US Department of Justice's subpoenas and potential criminal charges against the Federal Reserve, perceived as a challenge to its policy independence.
Despite the limited economic impact, the questioning of central bank independence increased demand for alternative value reserves. Bitcoin surged but failed to break through $92,000, retreating at the European market opening. Meanwhile, gold and silver maintained their upward momentum. The derivatives market showed a delayed bullish response, with investors rolling over high-priced call options to March. Market attention now shifts to the US CPI release on January 13th and the Supreme Court's tariff ruling on January 14th.
Bitcoin Volatility as Fed Independence Concerns Emerge
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