Bitcoin holds below $90K as markets remain cautious ahead of Fed decision: analysts

Bitcoin is trading below $90,000, around $87,900, reflecting a cautious market phase as investors await the Federal Reserve's interest rate decision and navigate various macro and political risks. Market indicators suggest consolidation, with subdued spot volumes, defensive positioning, and increased hedging demand, according to Glassnode. This caution is evidenced by significant outflows from global crypto ETPs, including $1.3 billion from U.S. spot bitcoin ETFs last week, causing Bitcoin to retrace over 10% from its mid-January peak. Analysts suggest the pause below $90,000 is due to repricing interest-rate expectations, forcing Bitcoin to compete more directly with higher risk-free Treasury yields, shifting its role toward a structural hedge. Broader risk-off sentiment, fueled by geopolitical uncertainty and U.S. shutdown risks, has also driven rotation into traditional havens like gold and silver. Despite near-term noise, market pricing indicates a near-certainty (97-99% probability) that the Fed will hold rates steady at the upcoming meeting.

(Source：The Block)