Crypto prices today have slightly risen as traders await the U.S. Federal Reserve’s interest rate decision, keeping the market on edge.
Summary
- Crypto prices edged higher as traders reduced leverage and stayed defensive ahead of the Federal Reserve’s policy decision.
- The Fed’s tone is key, with dovish remarks helping risk assets and hawkish ones weighing on prices.
- Analysts warn that macro uncertainty, geopolitical risks, and weak institutional conviction could keep Bitcoin and altcoins range-bound.
With modest gains in Bitcoin and a few other altcoins, the total value of the cryptocurrency market increased by 0.9% to $3.09 trillion. Trading volumes remained light, pointing to hesitation rather than a clear shift toward risk-taking.
At the time of writing, Bitcoin was trading at $88,837, up 0.6% over the past 24 hours. Price action was range-bound, with buyers defending support levels while sellers capping gains near the $90,000 level.
Altcoins posted modestly better results. BNB rose 1.6% to $897, Cardano gained 1.2% to $0.3556, and Monero advanced 1.9% to $466. Even so, none showed sufficient momentum to break out of their established ranges.
Overall sentiment stayed weak. The Crypto Fear & Greed Index held steady at 29, remaining in the “fear” zone, suggesting investors are still focused on preserving capital rather than seeking higher returns.
The derivatives market also showed a pullback in leverage. According to CoinGlass data, the total crypto open interest slipped 0.63% to $134 billion, while liquidations fell 18% to $296 million over the past 24 hours. The pullback suggests traders are closing positions and waiting for clearer macro direction rather than placing new bets.
Fed rate decision in focus as traders await guidance
The Federal Reserve is scheduled to announce its latest interest rate decision today, Jan. 28, at 2:00 p.m. ET, following the conclusion of the FOMC meeting that began on Jan. 27. Investors expect interest rates to remain unchanged, with attention now turning to Chair Jerome Powell’s comments.
A dovish tone that implies the possibility of rate cuts later in 2026 could benefit Bitcoin and other risk assets by raising liquidity expectations. Short-term selling pressure could result from a hawkish stance centered on inflation risks or the need to keep rates high.
Institutional flows already show signs of caution. U.S. exchange traded funds have seen mixed flows, with recent withdrawals indicating a defensive posture ahead of the Fed’s decision and ongoing macroeconomic uncertainty.
Analysts warn of downside risks amid macro pressure
Analysts point out that monetary policy is not the only issue. Geopolitical tensions, volatile energy prices, and the ongoing corporate earnings season are adding to market risk.
In comments shared exclusively with crypto.news, VALR CEO Farzam Ehsani said traders are increasingly avoiding leverage-heavy strategies as uncertainty rises on both macro and political fronts. He added that when risk appetite fades, Bitcoin typically absorbs the initial selling pressure, leaving altcoins struggling to attract sustained momentum.
Ehsani expects Bitcoin to trade within a $85,000–$90,000 range in the near term. He added that a sustained move below $85,000 could speed up outflows, opening the door towards $80,000, with deeper losses across altcoins if negative catalysts stack up.
Ray Youssef, CEO of NoOnes, shared a similar view in separate comments. He pointed to a fragile market structure and thin liquidity, which have increased sensitivity to sudden shocks, particularly during low-volume trading periods.
Youssef warned that rising geopolitical tensions, a rise in oil prices, and weak earnings from major technology firms could push Bitcoin toward the mid-$70,000 range. He added that, despite “digital gold” narratives, capital has recently flowed into traditional safe havens during periods of political stress, leaving crypto exposed to headline-driven volatility.
