Bitcoin rebounds on news of a Powell investigation, but markets stay cautious…ETF outflows, weak leverage demand

Despite political and legal uncertainty surrounding the chair of the U.S. Federal Reserve (Fed), the bitcoin (BTC) market is showing more of a wait-and-see stance than clear risk-off demand.

According to Cointelegraph on the 13th (local time), bitcoin briefly climbed above $92,000 after reports that U.S. federal prosecutors had opened a criminal investigation into Fed Chair Jerome Powell, but it failed to extend gains and traded in the $91,000 range. Despite the political headline, investor reaction was limited.

Bitcoin remains about 23% below its October 2025 peak, while gold and silver have extended their rallies, setting fresh record highs in 2026. This has also raised questions about bitcoin’s role as a “digital store of value.” Adding to the headwinds, Goldman Sachs withdrew its call for a March rate cut, citing inflation and employment data, dampening expectations for further improvement in the macro backdrop.

Derivatives and spot supply-demand indicators also support the cautious view. The annualized premium on bitcoin futures has hovered around 5%—below levels typically seen as a bullish signal—and U.S. spot bitcoin exchange-traded funds (ETFs) have recorded net outflows of about $1.38 billion over the past four trading days. Based on these trends, the market sees limited scope for a strong rally toward $105,000 in the near term.