According to ChainCatcher, as reported by Cointelegraph, Bitcoin briefly surged above $92,000 on Monday due to a criminal investigation launched by U.S. federal prosecutors against Federal Reserve Chair Jerome Powell. Analysts are questioning whether the Fed's independence might be affected, potentially benefiting scarce alternative assets like Bitcoin. Although the news triggered a short-term price rally, traders remain generally cautious, mainly due to continued outflows from Bitcoin ETFs and weak demand for long leveraged positions. Despite the recent rebound, Bitcoin is still down about 23% from its October 2025 high, while gold and silver hit record highs in 2026. This divergent trend has prompted traders to question whether the narrative of "Bitcoin as a digital store of value" is weakening. The annualized Bitcoin futures premium (i.e., the basis) remains at a neutral to slightly bearish level of around 5%. Typically, when market sentiment truly turns bullish, the premium of Bitcoin futures over the spot price often reaches or exceeds 10%. More importantly, Bitcoin spot ETFs recorded a combined net outflow of $1.38 billion over four consecutive trading days. More concerning is the fact that despite Strategy's purchase of approximately $1.25 billion worth of Bitcoin over the past month, the price has still failed to consistently hold above $94,000. Overall, the appeal of Bitcoin and cryptocurrencies remains weak, as evidenced by ETF outflows and the weak demand for leveraged long positions in Bitcoin. This suggests that the probability of an unexpected short-term rally breaking through $105,000 is relatively low.
Bitcoin Surges Above $92,000 Amid Powell Probe, But ETF Outflows and Weak Leverage Demand Limit Upside
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Summary
Bitcoin briefly climbed above $92,000 on Monday amid a probe into Fed Chair Powell, but leverage trading demand remained weak and ETF outflows limited gains. Spot ETFs experienced outflows of $1.38 billion over four days, while the annualized futures premium remained near 5%, indicating bearish sentiment. Despite a $1.25 billion purchase by Strategy, Bitcoin remains below $94,000 and faces key support and resistance levels ahead.
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