NEW YORK, Jan 29, 2026, 06:29 (EST) — Premarket
- Bitcoin dropped roughly 1.8%, dipping under $88,000 to trade near $87,700 in early New York activity.
- The Fed kept rates steady at 3.50%-3.75% on Wednesday, with Chair Jerome Powell signaling caution about future cuts.
- Data showed U.S. spot bitcoin ETFs experienced a net outflow of roughly $19.6 million on Jan. 28.
Bitcoin dropped close to 2% on Thursday, slipping below the $88,000 mark as investors digested a Federal Reserve signal indicating no immediate plans to lower rates again. BTC traded down 1.8% at $87,686.
This shift is significant now as crypto continues to lag despite renewed chatter about “hedges.” Gold reached new highs this week, while interest rates seem more persistent than many had anticipated just a month back.
Flows factor into the picture as well. The largest U.S.-listed spot bitcoin funds—ETFs that hold bitcoin and trade like stocks—have become volatile, and that often reflects quickly in short-term price moves.
The Fed kept its key rate steady at 3.50%-3.75% on Wednesday. Powell told reporters, “The economy has once again surprised us with its strength,” adding the central bank is “well-positioned” to hold off and wait for more data before making its next move. 1
U.S. spot bitcoin ETFs saw net outflows totaling $19.6 million on Jan. 28, Farside Investors reported. BlackRock’s iShares Bitcoin Trust (IBIT) accounted for $14.2 million of that outflow, whereas Fidelity’s FBTC attracted $19.5 million in new funds, the data revealed. 2
Major tokens took a hit, with Ether dropping roughly 3.0% to $2,924. XRP and Solana also slid, each losing around 3%.
Washington remains in the background. On Monday, the White House will meet with banking and crypto leaders to try to resolve the impasse over the Senate’s “Clarity Act,” three industry insiders told Reuters. Summer Mersinger, CEO of the Blockchain Association, said the group is “proud to participate,” while Digital Chamber CEO Cody Carbone noted the White House is “pulling all sides to the negotiating table.” 3
A separate analysis from Standard Chartered has stirred the debate over stablecoins — crypto tokens pegged to the dollar and commonly used for trading and payments. “U.S. banks … face a threat as payment networks and other core banking activities shift to stablecoins,” warned Geoff Kendrick, the bank’s global head of digital assets research. 4
Tether, the biggest stablecoin issuer, is increasing its exposure to bullion. CEO Paolo Ardoino told Reuters the company aims to hold “around 10% in bitcoin and 10% to 15% in gold.” He also revealed Tether currently backs some products with roughly 130 metric tons of physical gold. 5
Gold’s surge was sharp. Spot gold soared 4% on Wednesday, staying close to $5,400 an ounce as investors grappled with economic and geopolitical turmoil. “The rally in the precious metals has kind of taken on a life of its own,” said Peter Grant, vice president and senior metals strategist at Zaner Metals. 6
But crypto could also head south. Should inflation remain “somewhat elevated” and yields push up, liquidity-sensitive sectors may deflate fast. A sharper stretch of ETF outflows or further delays to the U.S. market-structure bill would put sentiment under real pressure.
Traders are watching to see if bitcoin can stay above this week’s lows and if ETF flows remain steady as Wall Street steps in. The next major event on the radar is the White House meeting on Feb. 2, focused on the Clarity Act and stablecoin rewards. 7
