TechFlow News, January 28: QCP Capital published an analysis stating that Bitcoin has rebounded to the $88,000 level following a sharp decline earlier this week. Markets currently face several key events: today’s (January 28) Federal Open Market Committee (FOMC) decision, the January 30 deadline for federal appropriations—potentially triggering a government shutdown—and Senate discussions on the cryptocurrency market structure bill.
Options markets reflect asymmetric risk: volatility remains relatively contained, and the term structure continues to show contango, indicating market expectations of sideways movement rather than a crash. However, left-tail risk premiums remain elevated, skew stays negative, and recent options price action resembles hedging against gap risk.
Fiscally, markets are watching whether Washington can smoothly navigate past the January 30 deadline. A timely agreement would ease near-term risk premiums, allowing cryptocurrencies to perform more in line with broader markets. The Fed’s decision is expected to hold rates steady, with focus shifting to when rate cuts may resume—a factor potentially influencing the U.S. dollar’s trajectory and short-term risk sentiment.
