Bitcoin Holds Near $88K as Fed Outlook Weighs

Key Moments

Bitcoin Struggles To Gain Traction Despite Supportive Macro Signals

Bitcoin traded softer on Thursday, retreating toward the $88,000 level even as the U.S. dollar eased and gold rallied sharply. The move came as investors absorbed the Federal Reserve’s latest policy decision to leave interest rates unchanged.

The world’s largest cryptocurrency was last quoted 1% lower at $88,201.6 by 01:56 ET (06:56 GMT). Trading has remained tightly confined this week, with Bitcoin oscillating between $86,000 and $89,000. Over the month of January, it has added only 1%.

Gm CT ☕️

The sea is red this morning.

BTC clinging to $88.2K (-1.05%), ETH underperforming at -1.6%, SOL down -2.82%.

Total market cap $1.76T.
Green is scarce…

dig into UGOLD +5.8% or BNB +0.18% if you want relief plays.

Hyperliquid and AI coins are getting flushed,… pic.twitter.com/EF7P61bWXR

— Deadline☠️🐧 | ETHGas ⛽ (@cryptodeadline) January 29, 2026

Gold Breaks Record While “Digital Gold” Lags

The muted performance in Bitcoin contrasted with a powerful move in precious metals. Gold prices surged, with bullion pushing through the $5,500 per ounce mark for the first time on Thursday. The rally was driven by safe-haven inflows, ongoing geopolitical strains, and market positioning around the Fed’s interest-rate path.

Despite often being labeled as “digital gold,” Bitcoin remained locked in a narrow band, showing little of the momentum seen in the physical metal even as the dollar weakened.

Fed Holds Rates, Signals Caution On Future Easing

The Federal Reserve on Wednesday kept its benchmark federal funds rate steady in a range of 3.50%-3.75%, pausing after three consecutive rate cuts.

Fed Chair Jerome Powell said policymakers needed more evidence that inflation was moving sustainably toward the 2% target before considering further easing, pointing to a still-resilient labour market and steady economic growth.

Powell’s remarks conveyed a cautious stance, reinforcing expectations that any future rate reductions will be gradual and highly dependent on incoming data. That outlook pressured risk-sensitive segments of the market, including cryptocurrencies, as participants reevaluated prospects for liquidity and financial conditions in the months ahead.

White House Seeks Breakthrough On Stalled U.S. Crypto Legislation

Policy developments in Washington also came into focus for digital-asset markets. The White House plans to bring together senior figures from the banking and cryptocurrency sectors next week in an effort to break an impasse over major U.S. crypto legislation, Reuters reported on Wednesday, citing industry sources.

The session, organized by the administration’s crypto council, is expected to center on disputed provisions related to whether crypto platforms can pay interest or rewards on dollar-pegged stablecoins.

The talks underscore President Donald Trump’s push to advance digital-asset legislation after months of friction between traditional banks and crypto firms over perceived competitive threats.

The planned summit is aimed at reviving progress on the Clarity Act, a bill designed to set federal standards for digital assets. Crypto industry representatives argue that yield features are essential for attracting and retaining users, while banks contend such products could accelerate deposit flight and undermine financial stability. Those concerns have contributed to a deadlock in the Senate’s work on the legislation, Reuters reported.

Altcoins Mirror Bitcoin’s Weak Tone

Broader crypto markets tracked Bitcoin’s subdued behavior, with major altcoins slipping in Thursday trade amid a broader risk-off backdrop.

World no.2 crypto Ethereum slipped 1.5% to $2,958.92, while world no. 3 crypto XRP also moved down 1.5% to $188. Solana declined 2.4, and Cardano and Polygon each eased 1.5%. Among meme-focused tokens, both Dogecoin and $TRUMP were down 2%.