KARACHI, January 28, 2026, 03:01 PKT — Trading session ongoing
- Bitcoin gained roughly 1.2%, hovering near $89,000 but remaining stuck under the $90,000 mark
- Traders are turning their attention to the U.S. Federal Reserve decision set for later Wednesday
- After several days of withdrawals, U.S. spot bitcoin ETFs saw a modest net inflow
Bitcoin edged higher on Wednesday, recovering some ground after a volatile week. Traders remained cautious ahead of the Federal Reserve’s upcoming policy announcement and new indications on U.S. interest rates.
The Fed kicked off a two-day meeting Tuesday, with most investors betting on a pause in rate changes when it concludes Wednesday. Attention now turns to Chair Jerome Powell’s signals about the next moves. 1
The meeting is scheduled for January 27-28, per the central bank’s calendar. It’s a key event, with markets closely watching every inflation and growth update, as well as signals on potential rate cuts later this year. 2
Bitcoin last traded near $88,988, marking a roughly 1.2% rise from the previous close. It fluctuated between $87,271 and $89,382 during the session.
U.S. spot bitcoin ETFs—funds that directly hold bitcoin—saw a small net inflow on Monday, ending a five-day streak of outflows, Decrypt reported, citing data from Farside Investors. Trade Nation’s senior analyst David Morrison described the move as “a positive sign,” highlighting a support zone “from around $85,000 up to $90,000.” 3
In Asian trading, analysts described the move more as consolidation than a clear reversal. “Bitcoin traded on a cautious footing,” holding between $87,000 and $89,000, Vikram Subburaj, CEO of Giottus, told reporters. Meanwhile, WazirX founder Nischal Shetty noted that “markets are waiting for clarity rather than reacting sharply.” 4
The bigger picture hasn’t been kind to crypto bulls: bitcoin lingered close to one-month lows while investors flocked to safer assets like gold and silver, both hitting new highs. Risk appetite remained uneven ahead of the Fed. 5
ETF flow trackers indicated the shift was modest, though the direction was notable. According to Coinglass data, a net inflow of roughly 183.5 bitcoin occurred on January 26, reversing several days of outflows. 6
Bitcoin’s recent trading highlights the market’s reluctance. It ended January 25 near $86,642 following a steep fall, then bounced back on January 26, per data from Investing.com. 7
Ether, the second-biggest cryptocurrency, climbed roughly 3% to $3,013, following bitcoin’s more stable movement.
The risk is clear: should Powell tilt more hawkish than anticipated, the dollar and Treasury yields might strengthen, tightening leverage and pushing bitcoin toward the lower bounds of its recent range. Another wave of ETF outflows would only deepen the slide.
Wednesday brings the Fed’s statement and Powell’s press conference. Traders will be scanning for any change in tone on inflation or hints about when rate cuts might come. After that, the focus shifts to the next daily update on U.S. spot bitcoin ETF flows to see if the trend holds. 8
