January 11, 2026
Finance

Cryptocurrency Markets Show Mixed Performance Amid Legal Developments Impacting Federal Reserve

Bitcoin and Ethereum rise with increased trading volumes, while XRP declines; federal subpoenas trigger stock futures downturn

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Summary

Major cryptocurrencies experienced a surge in trading activity and price increases, with Bitcoin and Ethereum leading gains. Despite the positive movement in crypto markets, stock futures declined sharply following subpoenas issued to the Federal Reserve related to Chairman Powell's Senate testimony. Market sentiment remains cautious as fears dominate the cryptocurrency space.

Key Points

Bitcoin and Ethereum experienced notable price increases accompanied by significant rises in trading volumes over 24 hours.
Over $140 million was liquidated in the cryptocurrency market within the last day, with balanced closures of long and short positions.
Stock futures declined following subpoenas issued to the Federal Reserve concerning Chairman Powell’s Senate testimony, introducing legal and political risk.
Ethereum is maintaining its stance above a key resistance zone, which analysts suggest increases the chances for new monthly highs, while Bitcoin remains under structural weakness concerns.

Leading cryptocurrencies demonstrated notable volatility on Sunday evening, with Bitcoin and Ethereum registering substantial gains amid heightened trading volumes, while XRP trailed with a modest decline.

Bitcoin advanced by approximately 0.97%, reaching a price point near $91,445 as volume surged by nearly 75% over the previous 24-hour period. Ethereum experienced a 1.21% increase to trade close to $3,129, buoyed by a similarly strong volume uptick of 84% in the same timeframe. These movements contribute to positive year-to-date returns of 4.42% for Bitcoin and over 5.6% for Ethereum in 2026.

The broader cryptocurrency market faced significant liquidation activity, with over $140 million wiped out within 24 hours according to Coinglass data. This liquidation was balanced between long and short position closures. Notwithstanding, Bitcoin's open interest reflected a modest 0.69% increase, with data indicating that approximately 70% of Binance traders holding open positions on Bitcoin remain long.

Market sentiment remains dominated by apprehension, as reflected by persistently low scores on the Crypto Fear and Greed Index.

Within the top gainers among cryptocurrencies with market caps exceeding $100 million, Story (IP) surged by 24% to $2.47, BUILDon (B) climbed 22.52% to $0.2758, and DeepBook Protocol (DEEP) increased 22.86% to reach $17.47.

The global cryptocurrency market capitalization presently stands at approximately $3.1 trillion, following a marginal increase of 0.45% over the preceding day.


Contrasting the gains in cryptocurrency, stock market futures moved lower overnight on Sunday. Futures on the Dow Jones Industrial Average declined by 186 points, or 0.37%, as of 8:40 p.m. EDT. Similarly, S&P 500 futures slipped by 0.47% and Nasdaq 100 futures dropped 0.72%.

This downturn in equity futures coincided with developments concerning legal actions targeting the Federal Reserve. Federal Reserve Chair Jerome Powell revealed that subpoenas had been issued to the institution, pertaining to a potential criminal indictment linked to testimony provided before the Senate Banking Committee last June. Powell characterized this legal effort as a repercussion of his decisions on interest rates deviating from the preferences of the President.


Regarding Ethereum, prominent cryptocurrency analyst Michaël van de Poppe observed that the asset maintains support above a critical resistance level between $3,000 and $3,100. He indicated that holding above this threshold enhances the likelihood of the asset reaching new monthly highs.

Conversely, cryptocurrency commentator EliZ expressed a cautious viewpoint on Bitcoin, labeling it as "structurally weak" with no "credible" evidence indicating the formation of a bottom. According to EliZ, any rebounds observed currently are primarily technical in nature until the underlying market structure evolves.

Risks
  • Legal uncertainties stemming from subpoenas issued to the Federal Reserve could increase market volatility.
  • Bitcoin’s current structural weakness and absence of credible bottom signals may lead to further price declines.
  • Persistently high fear sentiment in the cryptocurrency market indicates ongoing investor apprehension and potential for sudden market shifts.
Disclosure
Education only / not financial advice
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Ticker Sentiment
BTC - neutral ETH - positive XRP - negative SOL - positive DOGE - positive
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