New York, Jan 27, 2026, 13:54 EST — Regular session
- Bitcoin slipped slightly, moving within a narrow band as investors held back ahead of the Fed’s policy update.
- BlackRock’s latest SEC filing for a bitcoin options-income ETF grabbed fresh attention from institutional investors.
- After several days of withdrawals, spot bitcoin ETF flows edged into positive territory, data showed.
Bitcoin slipped under $88,000 on Tuesday, holding the market tight ahead of the Federal Reserve’s initial policy move this year. It fell roughly 0.3% to $87,823, fluctuating between $87,271 and $88,797 earlier. Ether climbed around 1.1%, reaching $2,951.
The timing is crucial. The Fed kicked off its two-day meeting Tuesday, wrapping up Wednesday. This period often shifts investor appetite for risk assets like crypto, especially with heightened sensitivity to rate changes and dollar fluctuations. (Federal Reserve)
Markets are largely pricing in a hold between 3.5% and 3.75%, with the bulk of traders betting on no change, per CME’s FedWatch barometer referenced by Fortune. The real uncertainty lies in the tone—specifically, how long policymakers plan to maintain current rates. (Fortune)
Beyond crypto, markets have taken on a cautious tone. Gold surged past $5,100 an ounce on Monday, setting a new record as investors flocked to havens amid geopolitical and economic jitters, Reuters reported. That environment has weighed on bitcoin’s appeal as a “safety” asset. (Reuters)
BlackRock, the world’s biggest asset manager, rolled out a new product filing. Its registration statement reveals an iShares Bitcoin Premium Income ETF designed to hold both bitcoin and shares of the iShares Bitcoin Trust ETF (IBIT). The fund would also sell call options on IBIT to generate premium income. (SEC)
A call option lets the buyer lock in the right to buy an asset at a fixed price, while the seller pockets the premium but risks missing out if prices surge. BlackRock told Decrypt it wouldn’t comment on how the new fund stacks up against competitors or when it plans to reveal fee details. (Decrypt)
Flows remain a key focus. U.S. spot bitcoin ETFs—those that hold bitcoin directly—saw $6.8 million in net inflows Monday, reversing five straight days of outflows that added up to nearly $1.72 billion, according to Farside Investors data cited by Decrypt. “It’s a positive sign,” said David Morrison, senior analyst at Trade Nation, but he dismissed the single-day bounce as “little more than a rounding error.” (Decrypt)
Some market watchers called the price moves more of a breather than a reversal. “Bitcoin traded on a cautious footing” and lingered between $87,000 and $89,000 during Asian hours, Vikram Subburaj, CEO of Giottus, told The Economic Times, highlighting macro uncertainty and focus on Fed signals. (The Economic Times)
Crypto-linked stocks showed a mixed performance in U.S. trading. IBIT ticked up roughly 0.1%, whereas Coinbase dropped around 2.1%, and bitcoin holder Strategy (formerly MicroStrategy) slipped about 1.7%.
Still, the risk on the downside remains tangible. Bitcoin slipped to as low as $86,100 on Sunday and was hovering just under $88,000, according to Investopedia, as tariff worries and shutdown news weighed on sentiment. (Investopedia)
The market is still digesting last year’s wild swings. Bitcoin surged past $125,000 in October but then tumbled below $88,000 before year’s end, according to a 2025 market summary from Reuters. (Reuters)
Wednesday brings the Fed’s statement at 2:00 p.m. ET, followed by Chair Jerome Powell’s press conference at 2:30 p.m. ET. Crypto traders will be watching closely to see if ETF flows remain positive and if the Fed’s tone keeps financial conditions loose enough to encourage risk-taking. (Federal Reserve)
