NEW YORK, Jan 26, 2026, 06:18 (EST) — Premarket
- Bitcoin dipped roughly 0.7% to hover near $87,870 in early U.S. trading, having dropped as low as about $86,100 earlier in the session.
- U.S.-listed spot bitcoin ETFs saw outflows for five consecutive days last week, shedding roughly $1.7 billion in total.
- Traders brace for the Federal Reserve’s Jan. 28 decision as a wave of big-tech earnings looms.
Bitcoin dipped slightly Monday, hovering near $87,870 and holding just below the $88,000 mark in early U.S. premarket trading. During the last session, it fluctuated between $86,126 and $88,814.
The dip unfolds amid a wider risk-off mood gripping markets, as investors shift toward havens and cut back on assets sensitive to sentiment swings.
This is crucial now as a slew of macro events this week could swiftly shift risk sentiment, and crypto remains closely tethered to those moves more than before.
Bitcoin tumbled up to 3.5% on Sunday, hitting a 2026 low just above $86,000 before regaining some ground in Asia on Monday. Ether slid even more, dropping as much as 5.7%. “Monday’s reprieve is more of a pause than a big bounce,” said Sean McNulty, APAC derivatives trading lead at FalconX. Spot bitcoin ETFs—those that hold bitcoin and trade on stock exchanges—logged five straight days of outflows, totaling $1.7 billion last week. IG analyst Tony Sycamore pointed to tariff threats, Middle East tensions, and growing chances of a U.S. government shutdown as key headwinds. 1
The scramble for safety showed up clearly in other markets as well. Gold surged past $5,100 an ounce, hitting new record highs. Kyle Rodda, senior market analyst at Capital.com, pointed to “this crisis of confidence in the U.S. administration and U.S. assets” as the driving force behind the move. 2
Currency markets have been volatile, with the yen jolting sharply amid intervention concerns and the dollar hovering near its weakest point against the yen since mid-November. “The market’s inclination is to short the yen but the possibility of coordination means it no longer is a one-way bet,” said Prashant Newnaha, a senior rates strategist at TD Securities. 3
Crypto’s nonstop trading cuts both ways. Thin liquidity over the weekend can amplify swings, and renewed volatility in rates or geopolitical tensions might drag bitcoin back down toward the weekend low.
Traders are keeping an eye on whether bitcoin can push back above $90,000, a key psychological barrier. ETF flow data and derivatives “funding rates”—the fees exchanged between leveraged long and short positions—offer short-term clues on market positioning.
The Federal Reserve’s policy meeting spans two days, Jan. 27-28, with the rate announcement set for Wednesday, Jan. 28. 4
Wednesday delivers earnings from Microsoft, Meta Platforms, and Tesla, with Apple set to report on Thursday. This lineup frequently triggers shifts in risk appetite, rippling through crypto markets. 5
Bitcoin remains far from its record high above $126,000 reached in early October, following a year where its price movements closely mirrored equity markets. Linh Tran, senior market analyst at XS.com, noted, “In 2025, the market showed that bitcoin increasingly exhibits the characteristics of a risk asset within the global financial system.” 6
Next on the radar: can bitcoin hold above $88,000 ahead of the Fed’s Jan. 28 decision? Traders are also eyeing potential changes in ETF flows as earnings reports and macro headlines roll in this week.
