Crypto Prices Soar! Trump and Powell’s Feud Sends Markets Into a Frenzy! 🚀💰

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Oh, what a jolly day it is for the crypto folk! Prices are bouncing up like a kangaroo on a pogo stick, all thanks to a little political kerfuffle over in the good ol’ U.S. of A! It seems that when politicians squabble, the investors take flight to the land of alternative assets. How delightful! 🐰💸

  • The total crypto market cap has taken a joyous leap of about 1.5% to a whopping $3.2 trillion, led by our dear friend Bitcoin and a few sprightly altcoins.
  • Bitcoin, the grand champion of the crypto world, is leading the charge while the derivatives data shows a bit of a rollercoaster-rising liquidations and a smidge higher open interest. 🎢
  • Analysts, those wise wizards of finance, see a short-term upside supported by improving flows, yet they remain twitchy about longer-term liquidity. It’s like riding a bike with no hands downhill! 🚴‍♂️😱

As of now, Bitcoin has pranced up by 1.8% over the past day, trading at a dazzling $92,054. Zcash jumped up 10% to $414, Bittensor gave a cheeky little nudge of 3.2% to $290, and Solana did a little jig, edging up 5.2% to $142. 🎉✨

But hold your horses! Despite this price bounce, the sentiment is as cautious as a cat on a hot tin roof. The Crypto Fear & Greed Index has slipped two points to a modest 27, keeping the market firmly in the “Fear” zone. 😬

CoinGlass has revealed that liquidations have surged-a whopping 136% to $165 million in just one day! Meanwhile, open interest has crept up by 0.47% to $139 billion. Talk about a busy beehive! 🐝

Trump and Powell: A Clash of Titans!

The rally followed a rather dramatic escalation in tensions between President Donald Trump and Federal Reserve Chair Jerome Powell. In a twist worthy of a soap opera, Powell revealed that the Justice Department had issued grand jury subpoenas linked to his congressional testimony over the Fed’s building renovations. Talk about a nail-biter! 🏛️💼

Powell described the move as a bit of political pressure tied to the Fed’s refusal to cut interest rates more aggressively. It’s getting juicy, folks!

Trump, not one to shy away from a fight, has repeatedly taken jabs at Powell over rate policy and has openly discussed replacing him when his term ends in 2026. In a public response, Powell stood tall, defending the Fed’s independence like a knight in shining armor, asserting that political demands do not sway monetary policy decisions. ⚔️🤺

This tussle has sent traditional markets into a tailspin! The U.S. dollar has weakened, stock futures have taken a nosedive, and gold is gleaming brighter than ever. Meanwhile, crypto assets are enjoying renewed buying interest as savvy investors seek refuge from the stormy seas of traditional finances. 🌊⛵

Analyst View: A Mixed Bag of Tricks 🎩

On-chain analyst Willy Woo, with a flair for the dramatic, offered a mixed outlook in a recent post on X. He claims his models show investor flows bottomed around Dec. 24 and have been improving steadily since. Quite the Christmas miracle, wouldn’t you say? 🎄✨

I’m bullish BTC late Jan through Feb but presently bearish for 2026.

This is a data informed opinion which I hold lightly.

Our internal models of investor flows put in a bottom on 24th December and has steadily strengthened. Typically it takes around 2-3 weeks for this to…

– Willy Woo (@woonomic) January 11, 2026

Woo pointed out that after months of weakness, the futures market liquidity has recovered, a trend reminiscent of the latter phases of the 2021 cycle. But beware! Since early 2025, liquidity growth has lagged behind price momentum, like a turtle in a race! 🐢🏁

Without a hearty rise in long-term spot buying, Woo expects a bit of a rocky road later in 2026. He added that Bitcoin still needs to challenge the $98,000-$100,000 zone before any chat about sustained upside makes sense. And that, my friends, is like asking a cat to swim! 🐱💦

For now, crypto’s gains reflect rising uncertainty in traditional markets rather than a clear shift in long-term risk appetite. Buckle up, because volatility is likely to stay high as investors weigh political pressures against slowing global liquidity! 🎢🌀

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2026-01-12 09:37