Bitcoin Drops After Hitting $90,000 After Fed Pause
Bitcoin briefly touched the $90,000 area again on Wednesday (January 28th), but then retreated slightly after the Federal Reserve held interest rates, as market expectations had anticipated. Risk sentiment remains mixed: the dollar briefly attempted a rebound, while investors continued to seek refuge in alternative assets.
Bitcoin (BTC): $89,074
Ethereum (ETH): $3,012.04
XRP: $1.91
Solana (SOL): $125.2
Cardano (ADA): $0.3568
Bitcoin's rise this week was previously supported by a weakening dollar, triggered by Trump's comment that the dollar would "find its own level"—leading the market to believe the White House was not being too aggressive in curbing the greenback's decline. At the same time, gold's record-breaking rally reinforced the "alternative store of value" narrative, contributing to the sentiment in crypto.
From a policy perspective, the Fed has indeed held interest rates at 3.50%–3.75%, so market participants' focus has shifted to the tone of the central bank's communication and the timing of the next easing. In theory, expectations of lower interest rates tend to be a boost for non-yielding assets like Bitcoin—as the opportunity cost of holding it also decreases.
Another layer to the story comes from Tether. CEO Paolo Ardoino stated that Tether plans to allocate 10%–15% of its investment portfolio to physical gold; they currently claim to hold around 130 tons and are regularly increasing purchases. For the market, this move signals that major crypto players are increasingly serious about diversifying into "hard" assets amid dollar uncertainty.
Source: Newsmaker.id
