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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.
Cryptocurrency Market Trends
- 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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