Bitcoin prices slipped on Monday after rising briefly in early Asian trading, extending last week’s range-bound movement as investor risk appetite remained fragile amid escalating tensions between U.S. President Donald Trump and the Federal Reserve.
Bitcoin fell 1% to $90,166.0 by 09:25 ET.
Broader market sentiment was also pressured by ongoing geopolitical uncertainty and caution ahead of major U.S. economic releases later this week.
Bitcoin and Fed tensions impact
Investor appetite for risk assets weakened after Federal Reserve Chair Jerome Powell said the central bank had been subpoenaed by the U.S. Department of Justice and could face a potential criminal indictment related to renovations at the Fed’s headquarters.
Powell suggested the probe was politically motivated, citing repeated pressure from the Trump administration to sharply cut interest rates.
The comments triggered declines in U.S. stock futures and prompted a shift toward safe-haven assets such as gold, limiting upside for cryptocurrencies.
Markets also remain wary as Trump is expected to name Powell’s successor in the near term, raising concerns over the future independence of the central bank.
Bitcoin geopolitical risks weigh
Geopolitical uncertainty continued to weigh on sentiment. Trump reiterated demands for U.S. control over Greenland, amplifying concerns after Washington’s recent incursion in Venezuela.
Tensions between China and Japan showed little sign of easing, while markets continued to monitor nationwide protests in Iran and ongoing hostilities between Russia and Ukraine.
These factors added to broader risk aversion, keeping Bitcoin under pressure.
Bitcoin and tech stock correlation
Bitcoin lagged gains in technology stocks, which benefited from renewed optimism around artificial intelligence.
While Bitcoin has historically traded in line with tech shares, analysts noted that this correlation has weakened over the past year.
A lack of crypto-specific catalysts has left Bitcoin struggling for direction through late 2025 and early 2026.
Ethereum outlook 2026
Standard Chartered said 2026 could mark a turning point for Ethereum relative to Bitcoin.
Analyst Geoff Kendrick said weaker Bitcoin performance has pressured dollar-based crypto forecasts, prompting cuts to Ethereum’s absolute price outlook for 2026 through 2028.
However, Kendrick said Ethereum’s relative fundamentals have improved, with expectations that the ETH-BTC ratio could gradually return to its 2021 highs.
Kendrick highlighted continued accumulation by Bitmine Immersion Technologies, the largest Ethereum-focused corporate treasury, even as ETF inflows and broader corporate demand have slowed.
He also pointed to Ethereum’s leading role in stablecoins, tokenised real-world assets, and decentralised finance as long-term structural strengths.
Planned increases in Ethereum’s layer-one throughput are also seen as supportive, with higher network capacity historically linked to higher market capitalisation.
While Kendrick lowered his end-2026 Ethereum price forecast to $7,500, he introduced a longer-term target of $40,000 by the end of 2030.
Crypto prices today
Altcoins moved mostly lower alongside Bitcoin, remaining within recent trading ranges.
Ether slipped about 1% to $3,082.01, while XRP fell more than 2%.
Solana rose 1.1%, while Cardano and BNB declined over 2% each.
Among meme tokens, Dogecoin dropped 3.4%, while the $TRUMP token fell 4%.
Markets are now focused on U.S. consumer price index data for December, due Tuesday, which could influence near-term interest rate expectations.
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