Bitcoin's price remains stable following the Federal Reserve's monetary pause

Bitcoin's price remains stable following the Federal Reserve's monetary pause

Bitcoin maintains its price near $89.000 after the Federal Reserve's decision to keep its monetary policy unchanged. 

The digital asset market exhibited remarkable resilience on January 28, keeping the leading cryptocurrency, Bitcoin, trading in a range near $89.000. This stability followed the Federal Reserve's Federal Open Market Committee's announcement of its resolution to maintain the upper limit of interest rates at 3,75%

The decision aligned with the general expectations of financial analysts and marked a pause in adjustments following a period of intensive economic monitoring. Although Bitcoin's price experienced intraday fluctuations typical of this time of year, the overall market structure did not suffer the massive sell-offs that characterized previous cycles.

According to experts, the measured reaction from investors shows that the market has matured enough to absorb the macroeconomic rhetoric without succumbing to immediate panic. The current price of the cryptocurrency reflects a balance between supply and demand in a scenario where the cost of money remains stable but still high. Traders appear to have already priced in the US central bank's stance and are now focusing their attention on the internal fundamentals of the blockchain industry and the liquidity available for the coming quarters.

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Powell moderates his rhetoric and points to a monetary policy that is neither rushed nor surprising.

The official statement issued by the monetary authority revealed important nuances about the health of the US economy that cryptocurrency investors should consider. According to the Valid identity document According to the Federal Reserve, economic activity continues to appear generally solid. However, officials acknowledged that job growth has been weak recently and admitted that inflation remains at levels they consider somewhat high. 

This combination of factors generated an unusual divergence within the voting committee. Two members, Stephen I. Miran and Christopher J. Waller, expressed their disagreement with the majority decision and advocated for an immediate 25-basis-point reduction in interest rates during this meeting.

During the subsequent conference, Jerome Powell sought to manage market expectations. He responded to repeated questions about whether the next move might be an interest rate hike, but clarified that this scenario is not a primary option for any of the Federal Reserve members. He further explained that the Fed has all its tools at its disposal, although it does not foresee an abrupt shift toward a more restrictive policy.

With these statements, Powell sought to offer reassurance and quell concerns about a potential tightening of monetary policy that could affect liquidity availability. His message made it clear that the central bank sees no urgency to ease monetary conditions, a scenario that is pushing digital assets to find their own growth drivers without relying on easy credit incentives.

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FOMC meetings do not dictate the course of Bitcoin, according to experts.

According to CryptoQuant analysts, FOMC decisions manage to capture the attention of crypto markets, although historical data indicates that These meetings do not usually define Bitcoin's trajectory in the medium term. In a recent publicationThey indicated that, rather, these meetings act as moments of readjustment in the market, where operators review positions and the balance between risk and expectations is readjusted.

Bitcoin (BTC) price after the Fed's monetary policy meeting.
Source: CoinGecko

Reviewing the FOMC meetings during 2025, analysts highlighted that Bitcoin's behavior in the seven days following the meetings showed mixed results. In meetings where interest rates remained unchanged, prices moved only slightly and in different directions. In contrast, the rate cuts implemented in September, October, and December coincided with declines of around 6% to 8%. This reveals that the impact was not a direct consequence of monetary policy, but rather of the pre-existing market conditions and the bets that had already been placed before the agency's announcements.

Experts conclude that, at such times, the market adjusts positions, sheds excesses, and returns to its natural rhythm, and that on-chain figures confirm that these oscillations reflect more of a technical cleanup than a trend change, reaffirming that the FOMC only signals a pause, not a direction.

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