The U.S. Department of Justice (DOJ) has officially filed a criminal lawsuit against the Federal Reserve Chair Jerome Powell. The DOJ claimed that Powell’s testimony before the Senate Banking Committee in June 2025 regarding the $2.5 billion renovation of the Federal Reserve’s headquarters in Washington, D.C., was false or misleading. Prosecutors are actively checking and analyzing whether any discrepancies exist in the Fed chair’s official testimony.
Generally, uncertainties and allegations revolving around the Federal Reserve or the Central Bank make a serious impact and shake financial markets heavily. However, the DOJ’s lawsuit did not affect the cryptocurrency market, especially Bitcoin. BTC, the largest cryptocurrency by market cap, is not falling or panicking at the moment. Despite the macroeconomic and political factors, BTC is still showing strong investor confidence and is currently being viewed as independent from central bank politics.
Despite the broader cryptocurrency market weakness, Bitcoin is showing extended short-term bullish momentum. Currently, BTC is trading above the $90,000 support level, recording a 0.15% gain over the past 24 hours. Reacting to the unchanged market scenario of Bitcoin, Jimmy Xue, co-founder and COO of the quantitative yield protocol Axis, stated that the challenge to central bank autonomy reinforced Bitcoin’s narrative as a “neutral” asset that operates independently of legal or political disputes.
Fed Reserve Chair Jerome Powell strongly disagreed with the allegations and claimed that the DOJ opened this criminal probe to put him under pressure on interest rates. He released his official statement on Sunday through a YouTube video. According to him, the ongoing effort from the DOJ is a part of the Trump administration’s ongoing political pressure campaign. He stated in the video that the issue was whether the Federal Reserve would be able to continue setting interest rates based on evidence and economic conditions, or whether monetary policy would instead be driven by political pressure or intimidation.
Currently, no formal charges have been filed, and it remains unclear whether the investigations will result in charges or be closed without any. The DOJ didn’t respond to Powell’s statement, and President Donald Trump denied any knowledge of the investigation, commenting that “I don’t know anything about it, but he’s certainly not very good at the Fed, and he’s not very good at building buildings.”
Bitcoin Remains Unaffected With The U.S. Department of Justice’s Lawsuit Filing on Powell
According to the latest market dynamics, Bitcoin remains unaffected by the U.S. Department of Justice’s lawsuit filing against Powell. Currently, BTC is trading at $90,566.56, with short-term bullish momentum catalyzed by safe-haven demand, institutional catalysts, and a technical breakout above key levels. A resistance at $95K is required for a sustained bullish momentum, and not dropping below the $90K support level will play a pivotal role in the upcoming sessions. Analyst Elja said in an X post that Bitcoin was still range-bound, with clear support around $87.6k and resistance near $94.5k.
He noted that with the price around $90.6k, he expected choppy price action and liquidity sweeps until Bitcoin broke and held above $95k, adding that such movement was normal for a healthy run. He advised patience and urged investors to watch how the market unfolds, while also referencing Michael Saylor’s advice to never sell Bitcoin.
The latest analysis concludes that BTC is likely to trade between day lows of $90,442 and highs near $92,340, showing apathy to the macroeconomic factors like lawsuits against the Fed chair. According to multiple cryptocurrency data tracking websites, BTC gained around 1% during Asiantrading hours as tensions between former President Trump and Fed Chair Powell escalated.
Quinn Thompson, CIO of Lekker Capital, said in response to Powell’s tweet that the escalation in Trump’s conflict with the Federal Reserve appeared to stem from Powell not stepping down from the Fed’s board after his term as Chair ends, or at least from not having given a clear answer yet. He added that this could be an attempt to pressure Powell by making his situation difficult and might also help explain the delay in announcing a new Fed Chair.
