Bitcoin (BTC), the flagship cryptocurrency, is holding steady around the $100,000 mark as investors await the Federal Open Market Committee (FOMC) meeting.
After a modest 3-4% correction on Tuesday (January 28), the leading cryptocurrency rebounded, reflecting cautious optimism among investors ahead of key policy remarks. Other major crypto-assets such as Ethereum (ETH), XRP, Solana (SOL) are holding steady as well according to CoinMarketCap and CoinGecko data. The Fear and Greed Index is neutral as well as the time of writing.
Notably, the Federal Reserve is expected to maintain interest rates at 4.25%-4.5%, with a 97.3% probability of no change, according to the CME FedWatch tool.
However, markets remain cautious about potential hawkish comments from Fed Chair Jerome Powell, which could impact Bitcoin and other risk assets.
Earlier this week, the crypto market experienced extreme turbulence and very high volatility, dropping 8% on Monday morning following news about DeepSeek, a Chinese AI model.
Bitcoin (BTC) dropped briefly to $98,000 on Monday before climbing to $104,000 early Tuesday, and was trading just above $100,000 at press time.
Crypto analyst Jelle emphasized the crypto market’s long-term strength despite short-term volatility, advising investors to stay calm and ignore the volatility ahead of the FOMC meeting.
Traders are closely monitoring Powell’s upcoming remarks for insights that could influence Bitcoin’s trajectory and broader market sentiment.
Anthony Pompliano, Founder & CEO, Professional Capital Management noted recently:
“We saw approximately $1.5 trillion erased from the US stock market. That is an amount comparable to the entire GDP of Spain. People are worried. But everyone is forgetting the most important development in financial markets — Donald Trump is back in the White House. He measures the success of the US economy through the price appreciation of the stock market (and increasingly the bitcoin price).”
Pompliano added:
“It would be devastating to him if the stock market crashed throughout his administration. This is why you have seen him advocating for lower interest rates, along with spending so much time with corporate leaders. Donald Trump wants to command the stock market to go higher. And given he is the most powerful man on the planet, and the leader of the free world, I wouldn’t bet against him.”
He also mentioned:
“Take the comments Trump made last night about Deepseek and the market response: We are locked in a global competition for AI supremacy. The United States has the talent, capital, and regulatory environment to win. If we accomplish what we are capable of, there should be an explosion of economic activity and stocks will go much, much higher….Betting against the American economy during a golden age of innovation has never played out well. There is no reason to believe it will work this time either.”
