TechFlow reports that, according to The Block, on January 27, Bitcoin’s price continues trading below $90,000, currently hovering around $87,900—a decline of nearly 4% over the past seven days. Market sentiment remains cautious as investors prepare for the U.S. Federal Reserve’s upcoming interest rate decision.
Glassnode analysts note that although leverage usage is beginning to cool, persistent selling pressure and rising hedging demand indicate continued market fragility. Institutional activity reflects this downside risk: global cryptocurrency ETPs recorded $1.7 billion in outflows last week, while U.S. spot Bitcoin ETFs experienced net outflows for five consecutive days, totaling over $1.3 billion withdrawn from the market.
Jimmy Xue, Co-Founder of Axis, stated that the shift toward “higher-for-longer” interest rates expected in 2026 raises the bar for risk assets, requiring Bitcoin to compete more directly with near-4% yields on risk-free U.S. Treasury bonds. Data from the CME FedWatch Tool shows a 97% probability that the Federal Reserve will hold its interest rate policy steady at Wednesday’s Federal Open Market Committee (FOMC) meeting.
