Bitcoin fails haven test as Justice Dept. subpoenas Powell: Crypto Daybook Americas

Core Insights - Bitcoin (BTC) is currently underperforming compared to traditional safe-haven assets like gold amid rising tensions between President Trump and Fed Chair Powell, raising concerns about the Federal Reserve's independence [1][2] Market Performance - Gold reached a record high of over $4,600 per ounce, while silver also hit an all-time high of $84.60. Bitcoin initially rose to $92,000 but later fell back to $90,500 during European trading hours [3][4] - The broader cryptocurrency market also retreated, with notable coins like Monero pulling back from a record high of $598 to $571, still reflecting a 15% increase over 24 hours [4] Economic Indicators - U.S. Treasury yields remained elevated, indicating that markets do not expect Powell to yield to legal pressures and cut interest rates aggressively. The 10-year U.S. yield was approaching 4.2%, while the two-year yield was at 3.54%, the highest in two weeks [5] Employment and Inflation Data - Analysts at ING noted that a dip in the U.S. jobless rate and potentially hotter-than-expected inflation data could prevent the Federal Reserve from cutting rates until at least March [6] ETF Flows - From January 5 to January 9, Bitcoin ETFs experienced net outflows of $681 million despite high trading volumes of $19.5 billion, indicating active repositioning rather than disengagement. Ethereum ETFs also saw $69 million in outflows, while XRP and SOL ETFs attracted capital, suggesting a selective risk appetite [7] Derivatives Market - The derivatives market shows a lackluster outlook in the near term, with 30-day BTC and ETH implied volatility indices at their lowest levels in weeks [8]