Bitcoin rebounds to $91,000 amid Fed Chair subpoena controversy, market risk aversion intensifies

Source: BlockMedia Original Title: [Coin Market] Bitcoin, ‘FOMC Chair Summons’ News Sparks ‘Brief’ Rise… Maintaining Around $91,000 Original Link:

Market Overview

Bitcoin rebounds amid news about Federal Reserve Chair, currently holding around $91,000. According to domestic digital asset exchange data, Bitcoin has increased by 0.69% to 1.346 billion KRW. Quotes from leading global exchanges are up 0.56% to $91,299. During the same period, Ethereum decreased by 0.58% to $3,096, and XRP fell by 0.72% to $2.06.

Liquidation Data

According to CoinGlass data, approximately $78.31 million worth of positions were liquidated in the past 24 hours in the Bitcoin market, with about 50.3% being short positions. The entire digital asset market experienced $260.2 million in liquidations.

Safe-Haven Asset Trends

The preference for safe assets continues to strengthen. Gold futures for February delivery briefly rose to $4,638.2 per ounce on the New York Mercantile Exchange, up 3.1% from the previous trading day, continuing a historic high rebound. Since breaking the $4,500 mark for the first time at the end of last year, it has continued to rise driven by related political turmoil. Silver futures for March delivery also increased to $85.84 per ounce, up 8.2%. Silver prices have remained strong after reaching a new high at the end of last year.

Market analysis suggests that if the independence of the Federal Reserve and its monetary policy credibility are compromised, inflation expectations could be reignited, further boosting demand for physical assets like gold and silver.

Policy Background

The main driver of volatility in the digital asset market stems from political controversy surrounding the Federal Reserve Chair. Participants in a public video stated that due to issues related to the Congressional testimony on the renovation of the Federal Reserve building in June last year, they faced subpoenas from a grand jury and criminal prosecution threats from the Department of Justice, questioning whether this was a political tactic by the administration to pressure for rate cuts.

The allegations involve mismanagement of the Federal Reserve headquarters renovation project and perjury during testimony. The market generally interprets this event as a continuation of the political conflict following the Trump administration’s ongoing pressure for rate cuts.

US Stock Market Performance

Despite controversy over the independence of the Federal Reserve, US stock markets closed higher. The Dow Jones Industrial Average rose 86.13 points (0.17%) to 49,590.20; the S&P 500 increased by 10.99 points (0.16%) to 6,977.27; the Nasdaq rose by 62.55 points (0.26%) to 23,733.90.

Market Sentiment

The Fear & Greed Index, reflecting investor psychology in the digital asset market, closed at 27 points, slightly down from 29 points the previous day. The index indicates that the closer to 0, the more fearful the market; the closer to 100, the greedier the market.