The latest confrontation between the US Justice Department and the US Federal Reserve is pushing investors toward assets insulated from political influence, with Bitcoin a beneficiary of the unease.
This is according to Nigel Green, CEO of deVere Group, speaking as Fed chair Jerome Powell confirms he faces a federal criminal investigation linked to his congressional testimony and the $2,5-billion renovation of the central bank’s headquarters.
“Markets recognize a deeper issue here than a policy disagreement,” says Green. “Pressure on the central bank of the world’s largest economy carries global consequences.
“Confidence in monetary governance in the US anchors financial stability far beyond its borders. When that confidence weakens, capital moves quickly toward assets designed to exist beyond political reach.”
He adds: “Legal scrutiny of the chair of the most influential central bank on earth, set against sustained political demands on interest rates, sends a signal investors do not ignore.
“Bitcoin, typically, responds positively to precisely this kind of signal.”
The Federal Reserve’s role reaches far beyond US borders. Its decisions shape global interest-rate cycles, capital flows, currency stability and risk pricing across continents, influencing trading desks, treasury teams, and policymakers across emerging markets.
“Monetary credibility in the US sets the tone for financial credibility everywhere,” notes Green.
“Financial systems operate on trust in institutions. The Fed anchors that trust for the dollar, for global bond markets, for equity valuations and for cross-border investment flows.
“When legal pressure appears alongside political frustration over interest rates, investors reassess the durability of that anchor.”
This reassessment has already translated into market moves.
“Equity futures have softened on concern around policy uncertainty,” Green says. “Gold has climbed to record territory as investors seek insulation from political risk.
“The US dollar has weakened against major peers as traders recalibrate faith in the institution behind it. Bitcoin has risen alongside these shifts.”
He adds: “Repositioning lifts assets built on independence from political control. Bitcoin fits that description better than any financial instrument in circulation. Its fixed supply, rule-based issuance and decentralised governance give it qualities that fiat currencies cannot replicate. Presidents cannot adjust its supply. Legislatures cannot rewrite its protocol. Central banks cannot influence its monetary settings.”
During periods of institutional strain, these features move from abstract theory to practical advantage. The current confrontation places the Fed’s autonomy at the centre of market psychology.
“Investors understand why autonomy matters. Monetary credibility keeps inflation expectations contained, stabilises bond yields and anchors currency confidence. When credibility comes under strain, defensive behaviour takes over.”
Gold has traditionally filled that defensive role. Bitcoin now shares that space.
Institutional adoption has accelerated that transition. Spot Bitcoin ETFs, regulated custody solutions and deeper derivatives markets allow pension funds, asset managers and family offices to move rapidly when monetary risk rises.
“In past decades, political pressure on central banks drove flows almost exclusively into gold and defensive currencies,” he says. “Today, Bitcoin absorbs part of that same demand.”