Federal Reserve Chair Jerome Powell said the Justice Department served the Fed with grand jury subpoenas and threatened criminal charges, framing the move as political retaliation tied to rate policy rather than the Fed’s $2,500,000,000 building renovation. Bitcoin (BTC) ticked higher on the headline, trading around $90,822 (+0.1% 24h) on CoinGecko and $91,226 (+0.42% 24h) on CoinMarketCap as macro desks repriced U.S. institutional risk. Political Pressure Claim Hits Markets Powell put the allegation i ...

Core Insights - A significant 67% of institutional investors expect a major Bitcoin rally in the next 3-6 months leading into 2026, despite current negative funding rates and $7 trillion in money market funds awaiting investment signals [1][2] - The macro environment is identified as the primary tail risk for both institutional (38%) and non-institutional (29%) investors in the crypto markets over the same period [2] Institutional Sentiment - Among 124 respondents, 67% of institutional investors and 62% of non-institutional investors maintain a bullish outlook for Bitcoin in the upcoming months [2] - Nearly 45% of institutions believe the market is in a late-stage bull phase, contrasting with just over 27% of non-institutional investors [4] Market Dynamics - Coinbase anticipates two more rate cuts from the Federal Reserve this quarter, which could incentivize the deployment of the $7 trillion currently in money market funds [4] - The Digital Asset Treasury companies (DATs) are expected to play a significant role in supporting a potential crypto rally, controlling approximately 3.5% of Bitcoin's circulating supply [5] Correlation and Valuation - Bitcoin's correlation with US stocks decreased from 0.55 to 0.40 in Q3, while its correlation with gold increased from -0.09 to 0.23 [6] - Bitcoin's MVRV value is currently at 0.85, indicating that the current price is 15% below the market average cost basis [6]