The post Crypto ticks higher after Powell’s warning, but THIS favors Bitcoin appeared on BitcoinEthereumNews.com.

The cryptocurrency market posted modest gains on the 12th of January following comments from Federal Reserve Chair Jerome Powell about institutional independence, but the rally remains fragile and heavily tilted toward Bitcoin rather than alternative cryptocurrencies. Total crypto market capitalization climbed back to $3.1 trillion, according to CoinMarketCap, though overall sentiment remained neutral with neither bulls nor bears in control. Powell’s remarks trigger market movement In a video statement, Powell addressed mounting pressure from the Trump administration on the Federal Reserve’s independence. The Fed Chair revealed he has faced threats of “criminal indictment” related to his refusal to set interest rates according to presidential preferences. “The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President,” Powell said. He warned that political interference poses risks to the Fed’s ability to conduct monetary policy based on economic evidence rather than political pressure—a distinction that matters significantly to crypto investors. Why interest rates matter for crypto Interest rate policy directly affects liquidity in risk assets like cryptocurrencies. Higher rates typically drain capital from speculative investments as money flows toward safer, yield-bearing instruments. Lower rates make borrowing cheaper and often push capital into higher-risk markets. Given President Trump’s pro-crypto stance and repeated calls for lower rates, some investors interpreted Powell’s defense of Fed independence as a signal that rate cuts could remain on the table at upcoming Federal Open Market Committee meetings. That expectation appears to have fueled the market bounce. Bitcoin absorbs the bulk of inflows Despite the broad market rebound, liquidity flows reveal a stark divide between Bitcoin [BTC] and altcoins. The Altcoin Season Index—which measures whether capital favors alternative cryptocurrencies over Bitcoin—dropped sharply from 57 to 39…

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Filed under: News - @ January 12, 2026 11:21 pm