Crypto didn’t move in isolation this week.
It traded like a high-beta macro asset.
#FedHoldsRates The driver was the Fed’s first FOMC meeting of 2026 (Jan 27–28). Rates were held at 3.5%–3.75% after late-2025 cuts, but the signal mattered more than the decision.
#Powell tone:
• No urgency to cut further
• Inflation still above target
• Growth remains resilient
• Policy stays data-dependent
That’s a classic “higher-for-longer pause.”
Why this matters for crypto:
•Fewer near-term cuts = cooler liquidity expectations
• Higher yields make Treasuries a stronger alternative to risk
• A firmer dollar tightens global liquidity
• Derivatives-heavy crypto reacts fast to tone shifts
Market reaction on it is 👇
$BTC saw sharp intraday volatility, holding better than alts
$ETH underperformed as leverage was reduced
#altcoins took the most pressure as risk appetite cooledThis wasn’t about bad news.It was about expectations being reset.
What traders are watching next:
• Fed minutes & speeches
• Inflation and jobs data
• Dollar strength & real yields
• Funding rates and open interest
Even a “no change” Fed meeting can move crypto—
because in this market, expectations are the product.
Market commentary, not financial advice.
#USIranStandoff #WhoIsNextFedChair $BULLA