Geopolitical and monetary factors remain the primary drivers supporting digital asset prices. In particular, mass anti-government protests in Iran—triggered by an economic crisis, social discontent, and demands for political reform, and accompanied by forceful suppression by authorities—provoked a strong reaction from the White House and statements from President Donald Trump signaling readiness to respond even with military force. Such a scenario could have led to a prolonged conflict in the Middle East, disrupting oil supplies from the region and increasing pressure on the global economy, which is already facing significant challenges. Iranian authorities later stated they were prepared to defend the country’s sovereignty and, according to available reports, have so far managed to regain control of the situation. However, an objective assessment remains difficult due to ongoing internet access restrictions across large parts of the country. Against this backdrop, the fundamental environment continues to drive increased demand for defensive and dollar-alternative assets, including cryptocurrencies.
At the same time, the US dollar came under pressure amid growing tensions between the White House and the Federal Reserve. Over the weekend, Fed Chair Jerome Powell and several senior officials received subpoenas from the US Department of Justice, signaling the start of a criminal investigation related to the alleged misuse of funds allocated for the renovation of the Federal Reserve’s Washington headquarters. Initially budgeted at $2.5 billion, the project reportedly exceeded $3.0 billion in actual costs. Powell described the investigation as an attempt by the administration of President Donald Trump to exert pressure on monetary authorities in order to accelerate interest rate cuts. Market participants feared that the situation could lead to Powell’s early removal and a shift in leadership toward White House economic adviser Kevin Hassett—currently viewed as the leading candidate and a proponent of aggressive monetary easing despite persistent inflation risks—potentially triggering sharp pressure on the dollar. However, the investigation sparked broad criticism from politicians, global central bankers, and investors, many of whom viewed it as an effort to undermine the Fed’s independence. As a result, President Trump was forced to publicly confirm that he does not plan to make leadership changes until May, when Jerome Powell’s four-year term officially ends.
Additional pressure on digital assets came from the delay in the US Senate’s consideration of a bill regulating the structure of the cryptocurrency market. The vote, initially scheduled for January 15, was postponed following backlash from influential industry participants. In particular, management at cryptocurrency exchange Coinbase opposed the current version of the bill, arguing that it would effectively ban tokenized securities and restrict the issuance and trading of such assets. Nevertheless, experts expect that after further revisions and negotiations, the legislation will ultimately be adopted, bringing clearer regulatory standards to the digital asset market.
Looking ahead to next week, most major assets may either extend their upward momentum or transition into a consolidation phase.
