cryptoneutral

Why Bitcoin is Making a Strong Return

USATuesday, January 20, 2026
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Key Factors Behind the Surge

  • Federal Reserve Drama
  • Jerome Powell, head of the U.S. Federal Reserve, revealed that the Trump administration attempted to intimidate the Fed with a fake investigation.
  • This news raised concerns about the Fed's independence, causing market jitters.

  • Safe Haven Investments
  • Uncertainty led investors to seek safe assets like gold and Bitcoin.
  • Low inflation also boosted confidence in risky assets like cryptocurrencies.
  • Bitcoin's Performance
  • Inching closer to the $100,000 mark.
  • 2025 was challenging, with a 6% drop despite friendly Trump administration policies.
  • Other Cryptocurrencies
  • Ethereum: Up over 4% in the last week.
  • Solana: Increased by more than 3%.

2025: A Tumultuous Year for Bitcoin

  • October Flash Crash
  • Bitcoin reached an all-time high of over $126,000 in early October.
  • By late November, it had dropped to $84,000, a 33% decline.
  • Traders lost $19 billion in assets during the crash.

2026: A Promising Start

  • Bitcoin's price is showing signs of recovery.
  • The future remains uncertain, but the current surge is a positive indicator.

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