The largest cryptocurrency exceeded the 97,000 US dollar mark on Wednesday during US trading hours, reaching a new two-week high. The upward movement occurs despite US producer prices coming in significantly above expectations in November, while political uncertainty from a criminal investigation against Fed Chair Jerome Powell is weighing on traditional stock markets. The latest increase represents a gain of nearly 7 percent within a week.
While technology stocks are under pressure, Bitcoin is increasingly developing as the preferred investment for investors seeking protection from geopolitical and economic policy risks. While this has always been a fundamental idea behind Bitcoin, it only proves true in phases. For example, at the end of 2025, gold rose to new record highs while BTC crashed from its ATH below 90,000 dollars.
This week could be very important for the crypto sector in the United States, the largest market for crypto assets. This is because the US Senate is currently intensively working on the CLARITY Act, which is intended to newly regulate cryptocurrencies and companies dealing with them. The focus is primarily on what jurisdictions the SEC and CFTC will have in the future — and which assets should be treated as securities and which as commodities.
The Bureau of Labor Statistics reported a rise in the US producer price index to 3.0 percent for November, while analysts had expected only 2.7 percent. Core PPI also reached 3.0 percent, marking the highest level since July 2025. The agency attributes the increase to a price jump in finished consumer goods of 0.9 percent, while prices for services remained unchanged.
The higher inflation figures strengthen expectations that the Federal Reserve will pause further interest rate cuts at its late January meeting. Market data shows that investors have largely priced in a maintenance of the current key interest rate.
Parallel to inflation concerns, the criminal investigation against Jerome Powell announced on Friday has further unsettled markets. The investigations, initiated by President Donald Trump, have raised concerns about the independence of the central bank.
Market observers see this as a key reason for increasing caution among equity investors. While traditional risk assets suffer under these circumstances, Bitcoin and precious metals benefit from the search for alternative stores of value. The expected Supreme Court decision on international trade tariffs did not materialize on Wednesday, as the court does not announce judgment dates in advance.
The Bitcoin rally has also driven stocks of companies with significant Bitcoin holdings — so-called Treasury companies — higher. Strategy, the largest Bitcoin Treasury company, recorded a price increase of more than 8 percent, while KindlyMD gained 10 percent. In Asia, Metaplanet, the region’s leading Bitcoin company, rose 15 percent in Tokyo trading. Strive gained 7 percent after Semler Scientific shareholders approved the acquisition. This development stands in stark contrast to weakness in technology stocks, where the Invesco QQQ Trust, which tracks the Nasdaq 100 Index, declined by more than 1 percent.
Gold is now trading near 4,600 US dollars per ounce, while silver has exceeded the 91 US dollar mark. Analysts increasingly view targets of 5,000 US dollars for gold and 100 US dollars for silver as achievable. The divergence between asset classes is becoming increasingly pronounced: while the QQQ ETF has remained virtually unchanged since the start of the year, Bitcoin has gained around 10 percent over the same period. Market experts attribute this shift to growing concerns about domestic policy measures and the increasing international involvement of the United States. Markets are being pulled in multiple directions, with geopolitical tensions, trade policy uncertainties, and concerns about central bank independence dominating sentiment.
