Bitcoin price up after Fed chair vows to fight new Trump attack

Group 1 - Bitcoin's price increased by 2% following Federal Reserve Chair Jerome Powell's commitment to resist pressure from President Trump, who has initiated legal actions against the Fed [1] - Powell described the Justice Department's actions as an unprecedented escalation in the conflict between the White House and the Federal Reserve, emphasizing the central bank's historical independence from presidential influence [2] - Trump's push for aggressive rate cuts contrasts with Powell's cautious stance, raising concerns among investors about the potential threat to the Fed's independence [3] Group 2 - The Federal Reserve recently reduced interest rates to their lowest level in three years, which typically benefits riskier assets like Bitcoin and tech stocks by making bonds less attractive [4] - Despite favorable conditions for stocks and gold, the overall cryptocurrency market has declined by $1 trillion from its peak in October, indicating a lag in crypto performance [5] - The CME FedWatch tool suggests that the Fed is expected to maintain current interest rates in the upcoming Open Market Committee meeting on January 28 [6]