NEW YORK, January 28, 2026, 13:42 EST — Regular session
- Bitcoin gained roughly 2.5%, hovering around $89,600, as attention turned to the Fed’s move later Wednesday
- The dollar paused its sharp decline, holding steady as gold hovered close to record peaks
- Analysts identified $90,000 as a critical threshold for renewed buying; a drop below could trigger downside risks
Bitcoin climbed Wednesday, hovering just under $90,000 ahead of the U.S. Federal Reserve’s policy announcement. The cryptocurrency gained 2.52% over the last 24 hours, trading around $89,623, according to CoinMarketCap.
The timing is crucial as the Fed’s statement and Chair Jerome Powell’s remarks can move the dollar and bond yields sharply. Crypto, behaving like a high-beta risk asset, tends to react strongly around such major macro events. The Fed will announce its decision at 2 p.m. EST, with Powell set to speak half an hour later. The market is largely pricing in no change to interest rates. Seema Shah, chief global strategist at Principal Asset Management, noted there’s “no urgency to lower rates aggressively.” Reuters
The dollar also played a key role. After its sharpest one-day drop since August 1, the dollar index — tracking a group of major currencies — nudged up again. Gold surged past $5,300 an ounce, hitting a fresh series of record highs, Reuters reported.
U.S. stocks wavered as investors wrestled with persistent Fed uncertainty and a flood of headline-driven earnings. The S&P 500 hit 7,000 briefly—marking a milestone—before retreating. Jeff Buchbinder, chief equity strategist at LPL Financial, noted that “big round numbers can be difficult psychological tests” for markets. Reuters
Other leading tokens followed suit. Ether, the second-largest crypto, climbed roughly 2.5% to near $3,011, according to CoinMarketCap.
Technical levels are dominating the narrative more than crypto headlines right now. David Morrison, senior market analyst at Trade Nation, pointed out that “Bitcoin really needs to break back over $90,000 convincingly.” He also warned that “a break below $85,000 could easily happen.” Investing.com
Crypto firms are doubling down on the “hard-asset” angle as gold prices rise. Tether CEO Paolo Ardoino told Reuters the firm plans to keep “around 10% in bitcoin” and between 10% and 15% in gold in its portfolio. Tether currently holds about 130 metric tons of physical gold and has been purchasing roughly two tons weekly. Reuters
Regulators and law enforcement remain a looming presence. According to blockchain research firm Chainalysis, money launderers moved at least $82 billion in cryptocurrencies in 2025, a sharp jump from $10 billion in 2020. The findings were reported by Reuters.
Crypto’s plumbing is drawing sharper scrutiny. Standard Chartered projects stablecoins—dollar-pegged tokens that traders use to move in and out of bitcoin—might siphon about $500 billion in deposits from U.S. banks by the end of 2028. This contest is already playing out in Washington’s regulatory and lobbying arenas.
The bounce could reverse quickly. Should the Fed take a tougher stance than anticipated, or if the dollar’s rally accelerates, bitcoin might fall back to the mid-$80,000s, rattling latecomers.
Traders are focused on the Fed statement due at 2 p.m. EST and Powell’s press conference, looking for any changes in tone. After the bell, earnings reports from Meta, Microsoft, and Tesla will offer a gauge of broader risk appetite.
