New York, January 26, 2026, 17:09 (EST) — After-hours
Bitcoin climbed roughly 2% to $87,989 late Monday, bouncing back from a dip to $86,126 earlier in the session. The cryptocurrency peaked at $88,654 during the day.
The shift came after a tense weekend across markets, as investors flocked to gold for safety. Bitcoin slipped briefly to about $86,100 on Sunday but recovered soon after. Gold futures climbed past $5,000 an ounce, underscoring the premium traders are willing to pay for protection. (Investopedia)
All eyes are on the Federal Reserve, which is expected to hold rates steady at 3.50%-3.75%. However, the focus has been diverted by a criminal probe into Chair Jerome Powell and an ongoing legal battle involving Fed Governor Lisa Cook. Tim Duy, chief U.S. economist at SGH Macro Advisors, commented, “Trump will need greater turnover at the Fed to fully control the institution.” (Reuters)
Crypto fund flows have added to the growing caution. According to CoinShares, digital asset investment products—including exchange-traded products tracking token prices—saw $1.73 billion in outflows last week. Bitcoin led the exodus with $1.09 billion pulled, followed by ether at $630 million. James Butterfill, head of research at CoinShares, pointed to “dwindling expectations for interest rate cuts” and disappointment that crypto hasn’t joined the “debasement trade”—a bet on assets that preserve value as currencies lose buying power—as likely drivers behind these withdrawals. (CoinShares)
Ether climbed roughly 4% to $2,926, outperforming bitcoin during the session.
Crypto-related U.S. stocks dipped in after-hours trading. Coinbase dropped roughly 1.6%, with Strategy sliding by about the same margin. Miners Marathon and Riot took bigger hits, falling around 5% and 6%, respectively.
Strategy, a significant corporate bitcoin holder, revealed in an SEC filing that it purchased 2,932 bitcoins between Jan. 20 and Jan. 25, spending $264.1 million at an average price of $90,061 per coin. These acquisitions were financed through proceeds from an at-the-market (ATM) share-sale program, which enables the gradual sale of stock into the market. (SEC)
Bitcoin has been behaving more like a risk asset tied to macro factors than a reliable hedge, frequently moving in response to changes in rate forecasts and headline volatility. This makes it prone to sharp pullbacks when traders unwind leverage.
But the rally has felt fragile. Should the Fed turn more hawkish than expected, or if fund withdrawals pick up pace, bitcoin might swiftly retest the weekend’s lows, pulling crypto-linked stocks down along with it.
The Fed’s meeting on Jan. 27-28 is the next major event on the calendar. Most expect the central bank to keep rates unchanged, shifting the focus to Powell’s comments following the announcement. (Investopedia)
