New York, January 16, 2026, 14:34 (EST) — Regular session
- Bitcoin slips following a volatile week that thrust U.S. policy back into focus.
- Prices are being tugged both ways by a stalled Senate crypto bill and changing expectations on rate cuts.
- Traders are eyeing ETF flows alongside the Fed’s meeting later this month for the next signal.
Bitcoin dipped below $95,000 on Friday, slipping about 0.5% to $94,953. Traders digested a postponement in U.S. crypto regulation talks alongside renewed uncertainty over the direction of interest rates. Ether dropped roughly 0.6%, while XRP also nudged down.
This matters because bitcoin’s recent rally hinges on two shaky assumptions: that Washington will provide clearer regulations for the sector, and that U.S. interest rates will continue to fall. Neither of those assumptions is guaranteed.
At the moment, crypto behaves like a macro asset caught in a whirlwind of political headlines. Cash flows surge in quickly, only to drain away just as fast once the next news cycle arrives.
The Senate Banking Committee delayed the markup session for the Digital Asset Market Clarity Act after Coinbase CEO Brian Armstrong withdrew his backing, Investopedia reported. Armstrong commented, “We’d rather have no bill than a bad bill.” The report also noted lawmakers struggling with an ethics clause that would bar senior officials from earning profits through crypto ventures. (Investopedia)
Senate Banking Committee Chairman Tim Scott offered a more measured update, confirming that discussions are ongoing. “Everyone remains at the table working in good faith,” Scott said in a statement. (Senate Banking Committee)
Rates came under fresh pressure. Federal Reserve Vice Chair for Supervision Michelle Bowman told Reuters the central bank must be prepared to cut again if the labor market weakens. She cautioned against suggesting a pause in rate cuts without a change in conditions. Reuters noted the Fed trimmed its benchmark rate by 75 basis points in late 2025, bringing it down to a 3.50%-3.75% range. (Reuters)
Flow data has been quietly steering the narrative lately. On Jan. 14, U.S. spot bitcoin exchange-traded funds—those holding actual bitcoin—saw net inflows of $840.6 million, with BlackRock’s iShares Bitcoin Trust (IBIT) pulling in $648.4 million, according to Farside Investors. The next day, Jan. 15, inflows cooled to $100.2 million. (Farside)
Crypto-linked stocks held steady in U.S. trading. Coinbase gained roughly 1.1%, while Strategy nudged up around 0.3%.
Several strategists continue to eye the $95,000 mark as a critical threshold. Joel Kruger, market strategist at LMAX Group, described it as a zone with “technical and psychological significance.” Meanwhile, Fundstrat’s head of digital asset strategy, Sean Farrell, suggested momentum might carry on in the days ahead. (Investopedia)
The downside is clear. Should the Senate bill stall or return with stricter wording seen as unfriendly to stablecoin rewards, risk appetite could shrink fast. Plus, if the Fed signals a more cautious approach on rate cuts, bitcoin’s link to yields and the dollar could snap back sharply.
The next major event is set: the Federal Reserve’s two-day policy meeting on January 27-28. Crypto traders will be dissecting the statement and Powell’s press conference, hunting for clues about an earlier-than-anticipated rate cut. (Federal Reserve)
