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Bitcoin made some gains after the Federal Reserve kept interest rates steady as widely expected, retreating from the $90,000 level and falling below $88,000 after clawing back rates for the first time since last Friday.
The world’s largest cryptocurrency by market capitalization has fallen 1.2% over the past 24 hours, trading at $87,862 as of 3:53 a.m. ET, while trading activity rose 13% and volume soared to $49.7 billion.
The cryptocurrency market capitalization fell by 1.1%. 3.06 trillion dollars.
As a result of the sudden move, total liquidations totaled $345.63 million, with BTC buyers totaling $112.36 million. coin glass data.
Fed pauses interest rate cuts
The U.S. Federal Reserve kept interest rates on hold this month, keeping rates at 3.50% to 3.75% following the Fed meeting that ended Wednesday. Last December, the Federal Reserve cut interest rates by 25 basis points.
Fed officials recommended a wait-and-see approach given sticky inflation and a tight labor market. In most cases, higher interest rates increase the opportunity cost of holding yielding assets such as U.S. Treasury bonds.
🚨FED pauses interest rate cuts for first time since mid-2025.
Inflation remains high, uncertainty remains, and the easing cycle is likely nearing its end. pic.twitter.com/HtM1Py2flg
— Wall Street Gold (@WSBGold) January 28, 2026
This in turn reduces the attractiveness of risky assets such as Bitcoin and stocks, something that has seemed to have emerged over the past 24 hours.
On the other hand, low interest rates generally support non-yielding assets by reducing the opportunity cost of holding them.
For example, the S&P 500 index futures contract fell 0.52% on January 29, mirroring Bitcoin’s decline on the same day.
Geopolitics is adding to risk aversion as investors turn to safe assets.
Tensions between the United States and Iran escalated this week after U.S. President Donald Trump said time was running out for Tehran and that a massive fleet was moving quickly toward Iran “with great power, passion and purpose.”
“I hope Iran ‘comes to the table’ quickly and gets a fair and equitable deal that is good for all parties, a deal to ban nuclear weapons,” Trump said. “Time is running out and this is really the key!”
It was Trump’s clearest hint yet that he would launch an immediate military strike if Iran refuses to negotiate on the future of its nuclear program.
Bitcoin price at a stage yet to be determined
After hitting an all-time high of $126,200 in early October. bitcoin price It continues to decline and has reached a long-term support area around $80,629. This level became a strong demand area and the price recovered from the $95,500 level.
This area now acts as a strong barrier to upside and a buffer against downside pressure, with BTC price now remaining within a sideways pattern.
After reaching the $97,808 resistance on January 14, Bitcoin pulled back and the 0.618 Fibonacci level ($86,803) currently provides support.
The recent decline has pushed BTC price below the 50-day simple moving average (SMA), supporting the current bearish outlook, but still above the current support area.
Moreover, the Relative Strength Index (RSI) is trading between 37 and 47, indicating continued indecision among investors.
BTC Price at Key Points
Bitcoin appears to be at a critical juncture, with price action consolidating within a range following a sharp corrective move.
The market is currently hovering above a key demand area near the lower support line, suggesting that buyers are still defending this area despite the current bearish pressure. If BTC can stabilize above the 88,000-89,000 area and regain near-term resistance, a relief move towards the 93,000-95,000 area becomes increasingly likely as sellers lose momentum.
Conversely, failure to maintain current support will weaken the consolidation structure and increase the likelihood of continuation towards lower support levels near the previous range low.
In this case, if BTC falls below the 0.618 Fib level, the next possible support is the 0.786 Fib level around $84,302, followed by the $80,629 level.
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