Bitcoin Stalls at $97,000 as Trump’s Insurrection Act Threat Fails to Spark Rally

CN
1 hour ago

After opening the week with three consecutive days of gains exceeding 2%, bitcoin stalled Thursday, reaching an intraday peak just above $97,000. Momentum faded even as President Donald Trump intensified his pressure campaign against domestic dissent, threatening to invoke the 1807 Insurrection Act.

While the move would mark the most aggressive use of presidential authority in the current administration, the threat failed to spark the “flight to safety” rally seen after the U.S. Department of Justice (DOJ) subpoenaed the Federal Reserve. Instead, the cryptocurrency trended downward, hitting an intraday low of $95,411.

Read more: Bitcoin Nears $100,000 as Tariff Limbo and Fed-Trump Clash Ignite ‘Perfect Storm’

The cooling price action stood in contrast to massive institutional demand. On Jan. 14, U.S. spot bitcoin exchange-traded funds (ETFs) saw net inflows of $843.6 million, yet even news of this surge failed to push the digital asset past its previous day’s peak of $97,797.

Market analysts noted that the current stagnation follows a “perfect storm” earlier in the week. On Jan. 13, inflows of $754 million combined with a U.S. Supreme Court decision to defer a ruling on Trump’s reciprocal tariffs, fueling a nearly 5% rally.

However, bitcoin’s failure to test the $98,000 resistance level halted a bullish sentiment that emerged after the DOJ’s move against the Fed. That legal maneuver has sparked a national debate over the central bank’s independence, with critics arguing that the administration’s repeated attacks are eroding the institution’s global credibility.

Also read: Ripple Locks RLUSD Into LMAX’s $8.2 Trillion Trading Engine

Meanwhile, despite the volatility, the analytics team at B2BINPAY maintains that bitcoin’s market structure remains bullish as long as it holds above the $95,000 support level. The team expects the asset to eventually challenge the $100,000 milestone.

“ Bitcoin is gradually moving out of the long flat phase that began in mid-November 2025,” B2BINPAY said in a statement. “The absence of a sharp burst of activity on the chart suggests a healthy pause before the market makes another attempt at $100,000.”

The group further noted that funding rates and open interest—currently holding near $65 billion—are not at “extreme” levels, indicating the market is not overleveraged. B2BINPAY analysts project bitcoin could reach the $100,000 to $105,000 range within weeks, with a potential climb to $140,000 later in 2026 if demand persists. Conversely, a failure to hold current levels could trigger a pullback to the $88,000–$90,000 range, where significant buyer liquidity is concentrated.

  • Why did bitcoin stall near $97K? Political tensions in Washington and Fed clashes cooled investor appetite.
  • Did ETF inflows boost prices? Despite $843M in U.S. ETF inflows, bitcoin failed to break resistance.
  • What support level matters now? Analysts say holding above $95K keeps the market structure bullish.
  • Where could bitcoin head next? Forecasts see $100K–$105K soon, with $140K possible in 2026 if demand holds.

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