Investors are closely watching the Fed's interest rate decision because policy signals could still have a strong impact on the market.
On the evening of January 26th, the cryptocurrency market continued to be in the red. Data from the OKX exchange shows that in the past 24 hours, Bitcoin fell 1%, dropping to $87,872.
Similar trends were seen in many other major cryptocurrencies. Ethereum fell 1% to $2,905; BNB lost 0.7% to $873; Solana dropped nearly 3% to $123. XRP, however, bucked the general trend, rising slightly by 0.2% to $1.90.
According to Cointelegraph , Bitcoin is entering the final days of January in a rather sensitive state, as global macroeconomic factors continue to create significant volatility in financial markets.
Earlier, the price of Bitcoin briefly fell to around $86,000 at the close of the week, precisely the price range that many traders had warned about.
Although buying pressure reappeared at the beginning of the week, helping the price temporarily hold this support zone, Bitcoin still lacks the momentum to return to the $90,000 mark.
Many experts believe the cryptocurrency market is in a defensive state, due to investor concerns about global economic risks.
Analyst Michaël van de Poppe suggests that the recent sell-off reflects a heightened sense of caution as investors prepare for worst-case scenarios.
Bitcoin is currently trading at $87,872. Source: OKX
However, he also suggested that this could be a period opening up opportunities for long-term accumulation. Conversely, many warned that Bitcoin closing the week below key price levels indicates a negative short-term trend.
The selling pressure was also evident in the liquidation figures on the market, with nearly $750 million worth of positions closed in just 24 hours.
Some traders predict Bitcoin could continue to fall to the $80,000 range in the coming weeks, especially as risks related to US economic policy and the potential for a US government shutdown remain. However, there is also a view that the market is gradually approaching the final stages of bottoming out.
The focus of investors this week is the Federal Reserve's interest rate decision. While the Fed is likely to keep interest rates unchanged, policy signals from Chairman Jerome Powell are expected to have a significant impact on the market.
Against this backdrop, money is temporarily shifting towards gold and silver, two assets that are continuously reaching new highs, while Bitcoin is still struggling to find its direction. This suggests that the cryptocurrency market is facing a crucial phase, where risks and opportunities are intertwined.