Bitcoin Holds Gains in Asia as Fed Tensions and Global Risks Cap Upside

Bitcoin edged higher in Asian trade on Monday, holding close to last week’s levels as risk appetite remained fragile amid rising tensions between U.S. President Donald Trump and the Federal Reserve.

Ongoing geopolitical uncertainty and caution ahead of key U.S. economic data releases this week also kept investors on edge. While technology shares rallied on improving sentiment around artificial intelligence, Bitcoin largely failed to participate in the move.

Although the world’s largest cryptocurrency often trades in line with tech stocks, this correlation has weakened over the past year. The absence of directly positive catalysts for the crypto sector left Bitcoin under pressure through late 2025 and early 2026.

Bitcoin rose 1.5% to 92,094.4 by 00:51 ET 05:51 GMT.

Fed Probe and Geopolitics Weigh on Crypto Appetite

Further gains in Bitcoin were restrained by a fresh blow to risk sentiment at the start of the week.

U.S. Federal Reserve Chair Jerome Powell said the central bank had been subpoenaed by the Department of Justice and was facing a potential criminal indictment related to the renovation of the Fed’s headquarters. Powell suggested the probe was politically motivated, pointing to repeated calls from the Trump administration for sharp interest rate cuts.

His comments triggered losses in U.S. stock futures and prompted a move into safe haven assets, particularly gold and other precious metals. Markets grew increasingly concerned that rising friction between Trump and the Fed could undermine the central bank’s independence, especially with Trump expected to name Powell’s successor in the near term.

Geopolitical risks added another layer of caution. Trump reiterated his demands that the United States take control of Greenland, a prospect that unsettled markets following Washington’s recent incursion in Venezuela. At the same time, a diplomatic standoff between China and Japan showed little sign of easing, while attention remained on nationwide protests in Iran and ongoing hostilities between Russia and Ukraine.

Altcoins Edge Higher as CPI Data Looms

Broader crypto prices also moved higher alongside Bitcoin on Monday, but remained largely confined to recent trading ranges.

Market focus this week is firmly on U.S. consumer price index data for December, due on Tuesday. The release is expected to play a key role in shaping expectations for future interest rate moves.

Ether rose 2% to $3,160.47, while XRP slipped 0.6%. Solana jumped 5%, Cardano gained 2%, and BNB lagged with a 0.6% decline.

Among meme tokens, Dogecoin added 0.5%, while the TRUMP token rose 0.7%.

Overall, crypto markets remain caught between modest technical rebounds and a broader environment of political and macroeconomic uncertainty, leaving Bitcoin trading with limited conviction.