Bitcoin Briefly Re‑claims $90,000 as Crypto Markets Rally Ahead of Fed Decision
Jan. 28, 2026 – Global crypto markets saw a modest but notable uptick on Wednesday, with Bitcoin (BTC) slipping back above the $90k threshold for a short spell. The move came as investors repositioned ahead of the Federal Reserve’s policy announcement later in the day.
Market Overview
- Bitcoin traded near $89,500 at the time of writing, up roughly 2 % over the previous 24 hours while holding steady on the weekly chart.
- Ethereum (ETH) outperformed the leading coin, climbing over 2.5 % to break the $3,000 barrier after several days of range‑bound trading.
- The broader crypto market capitalization rose to about $3.11 trillion, a 1.4 % increase from the prior day.
- Most large‑cap assets posted modest gains; the only major exception was TRON (TRX), which slipped about 1 %.
The price bounce coincided with a dip in the U.S. Dollar Index (DXY). The index fell after former President Donald Trump remarked that he was “not worried” about the recent weakening of the greenback. Since Trump took office, the DXY has slipped roughly 10.4 % year‑to‑date.
Sentiment and On‑Chain Indicators
Even with the price rally, on‑chain data points to lingering caution among institutional participants. Glassnode analyst Chris Beamish noted that Ethereum continues to trade within a tight cost‑basis cluster that many long‑term holders view as a breakeven zone. A breach of this zone could force bearish sentiment and trigger further downside pressure.
The Crypto Fear & Greed Index remains in “fear” territory, signaling that market participants are still wary despite the short‑term bounce.
Key Takeaway: Price momentum alone is not yet translating into broader conviction; underlying on‑chain metrics suggest that the rally could be fragile.
Movers in the Top‑100
- Hyperliquid (HYPE) led the gainers, surging around 18 % in the last 24 hours.
- Canton (CC) added another 8 % gain.
- On the downside, RIVER fell nearly 25 %, becoming the day’s biggest loser, while Midnight (NIGHT) slipped about 5 %.
A noteworthy newcomer, BIRB—the native token of the Moonbirds NFT ecosystem—shot up more than 100 % after its launch earlier in the day, making it the top trending asset on CoinGecko.
Liquidations
Higher prices prompted a wave of leveraged position liquidations. Data from CoinGlass shows roughly $315 million in liquidations over the past 24 hours:
| Type | Approx. Value |
|---|---|
| Shorts | $250 million |
| Longs | $64 million |
| Leading liquidated assets | ETH (~$95 M), BTC (~$92 M), HYPE (~$26 M) |
The predominance of short‑side wipes suggests that traders who bet on a further decline were caught off guard by the price rebound.
ETF Flows
Spot exchange‑traded funds saw net outflows on Tuesday, Jan. 27:
- Ethereum ETFs: $63.5 million net outflow.
- Bitcoin ETFs: $147.4 million net outflow.
Despite the outflows, total net assets in Bitcoin ETFs climbed to just under $115 billion, while Ethereum‑focused funds held assets of about $18.15 billion, buoyed by the recent price gains.
Macro Context
All eyes remain on the Federal Reserve’s policy meeting scheduled for Wednesday afternoon. Market consensus, reflected in CNBC’s coverage, anticipates that the Fed will keep the benchmark rate unchanged. Analysts at QCP Capital argue that the narrative will hinge more on Chair Jerome Powell’s forward guidance than on the decision itself.
Their note stresses that while inflation stays above the Fed’s target, a softening labor market could set the stage for future rate cuts.
Analysis & Outlook
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Short‑Term Rally vs. Long‑Term Conviction – The brief re‑entry of Bitcoin above $90k appears driven by short‑term positioning ahead of the Fed announcement rather than a durable shift in market sentiment.
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Dollar Weakness as a Support – A softer dollar, as reflected in the DXY decline, has historically helped lift crypto valuations; the recent dip may have contributed to the temporary price bounce.
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Institutional Caution Persists – On‑chain metrics and the “fear” reading of the sentiment index suggest that large investors are still waiting for clearer macro cues before committing more capital.
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Liquidity Pressures – The sizable short‑side liquidations highlight the risk of volatility spikes; a reversal could quickly unwind the upside.
- ETF Dynamics – Persistent outflows from spot ETFs indicate that some retail exposure is being trimmed, even as total assets under management continue to rise due to price appreciation.
Bottom Line: While Bitcoin’s fleeting climb above $90,000 offers a momentary boost for the crypto market, broader confidence remains tentative. The forthcoming Fed commentary will likely shape the next leg of price action, with investors watching for any hints of a shift in monetary policy that could either reinforce the current rally or trigger renewed sell‑off pressure.
Source: https://thedefiant.io/news/markets/bitcoin-reclaims-usd90k-market-update-jan-28-2026
