Bitcoin 
$105,772 price continues to oscillate between $103,800 and $101,800, negatively impacting altcoins and leading to new lows as gradual increases are followed by significant declines. January 29 is particularly crucial for cryptocurrency traders as the Federal Reserve is set to announce its interest rate decision, which will likely contribute to overall market volatility.
Fed Meeting and Its Impact on Crypto
Trump aims to tame inflation by lowering energy prices. He may call for interest rate cuts, yet maximum outcomes are limited. We know Powell will remain in his role for another two years, and his recent statements indicate a more cautious approach.
The markets reflect nearly a 100% probability that interest rates will remain unchanged. This is due to a halt in the decline of inflation and strong employment data. Even for the end of next year, expectations suggest rates will not drop below 3%.
Fed is working to revert interest rates at an unprecedented pace as it previously raised them. If tomorrow’s announcements indicate a maximum of two interest rate cuts this year, we may see an increase in immediate selling in risky markets.
Expert Opinions
There are compelling reasons for Powell to adopt a gentler tone in his Wednesday remarks. If he aims to avoid triggering a significant stock market crash following a $1 trillion loss, he should refrain from hawkish comments until the implications of the DeepSeek event for the U.S. are understood.
As the White House examines whether China’s AI developments threaten national security, leading tech companies faced significant sell-offs. If Powell adopts a hawkish stance, it could ignite turmoil in risk markets throughout the week, suggesting a neutral tone might be his strategy.
Poppe commented:
“NVDA is surging, Bitcoin maintains its strength, while altcoins continue to show weakness. Why? Because of tomorrow’s FED Meeting. There is no likelihood of a rate cut, nor any signs of potential cuts in the future, which harms the outlook for altcoins.”
