Bitcoin (BTC) Price: Holds Support Ahead of Fed Rate Decision and Big Tech Earnings

TLDR

• Bitcoin traded near $88,296 on Tuesday, staying below $90,000 and close to one-month lows as traders waited for the Federal Reserve’s policy meeting
• Bitcoin spot ETFs recorded their first net inflow in six days at $6.84 million on January 26, with BlackRock’s IBIT leading at $15.93 million
• The cryptocurrency has gained only 1% in 2026 so far, underperforming other assets including gold and silver which hit record highs
• Japan could launch its first cryptocurrency ETFs as early as 2028, according to a Nikkei report, with the Financial Services Agency planning to add crypto to eligible ETF assets
• The Federal Reserve meeting is expected to result in unchanged interest rates on Wednesday, with traders watching for signals about future rate cuts and inflation outlook

Bitcoin traded at $88,296 on Tuesday morning, showing a modest 0.4% gain but remaining stuck below the $90,000 level. The world’s largest cryptocurrency has struggled to find direction after losing ground last week.

The digital asset traded near one-month lows as investors remained cautious. Trading volumes were muted across crypto markets heading into a critical week for global risk assets.

Bitcoin has managed only a 1% gain so far in 2026. This performance lags behind other assets despite a weaker U.S. dollar, which typically helps cryptocurrencies.

The token dropped roughly 4% over the past week. This decline extended into early-week trading as major cryptocurrencies softened.

Gold and silver have surged to consecutive record highs during the same period. The precious metals rally reflects strong safe-haven demand amid geopolitical uncertainty and global growth concerns.

Bitcoin’s failure to benefit from these same conditions shows it is trading more like a high-beta risk asset than a hedge. The cryptocurrency has not captured the safe-haven flows moving into traditional stores of value.

Federal Reserve Meeting Takes Center Stage

Market attention has shifted to the Federal Reserve’s two-day meeting that begins Tuesday. Policymakers are widely expected to keep interest rates unchanged when they announce their decision Wednesday.

While a pause is largely priced into markets, traders are focused on the Fed’s statement and Chair Jerome Powell’s press conference. Investors want clues about the timing of potential rate cuts and the central bank’s view on inflation.

Any change in Powell’s tone could influence broader risk sentiment and liquidity conditions. Both factors serve as key drivers for cryptocurrency markets.

Markets are also watching for news on President Donald Trump’s appointment of a new Fed chair. This decision could shape the central bank’s policy direction and longer-term expectations.

Traders remain cautious ahead of Wednesday’s Fed decision. A wave of Big Tech earnings is also coming this week, with both events seen as key catalysts for Bitcoin’s next move.

Bitcoin ETFs Show Signs of Life

Bitcoin spot ETFs recorded a total net inflow of $6.84 million on January 26. This marked the first net inflow after five consecutive days of outflows.

BlackRock’s IBIT led the inflows with $15.93 million entering the fund. IBIT’s historical total net inflow has reached $62.92 billion.

Grayscale’s Bitcoin Mini Trust ETF BTC came in second with a single-day net inflow of $7.75 million. BTC’s historical total net inflow stands at $1.96 billion.

Bitwise’s BITB experienced the largest outflow at $10.97 million. BITB’s historical total net inflow currently sits at $2.16 billion.

The total net asset value of Bitcoin spot ETFs reached $113.54 billion. These funds represent 6.48% of Bitcoin’s total market cap, with cumulative historical net inflows of $56.50 billion.

Japan’s Financial Services Agency plans to add cryptocurrencies to its list of eligible ETF assets, according to a Nikkei report from Monday. The country could see its first crypto ETFs launch as early as 2028, potentially making it easier for retail investors to access Bitcoin and other digital assets.

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