The Federal Reserve issued its first FOMC statement for 2026 today, January 28. The Fed’s announcement aligned with predictions made on Polymarket and Kalshi, thus adding bearish pressure on Bitcoin (BTC) amid a bullish bonanza in the precious metals industry.
Federal Reserve Ends Rate-Cut Streaks
After initiating three rate cuts in 2025, the Fed has made the decision to hold its interest rates between 3.5% and 3.75% during its January FOMC statement.
According to Fed Chair Jerome Powell, the U.S. economy has expanded following its 75 bps rate cut in 2026 in addition to its ongoing Quantitative Easing (QE).
Bitcoin Trembles as Gold Hits Fresh Highs
Following the FOMC announcement, Bitcoin price edged lower, signaling midterm bearish sentiment. The flagship coin was rejected twice at around $90,000, thus trading at about $89,221 at press time.
Meanwhile, the gold price jumped 3.5% on the day to hit a fresh new all-time high of about $5,367 at press time.
What’s the Outlook on the Horizon?
The defensive actions from the Fed to save the weakening U.S. dollar are temporary as President Trump continues to advocate for rate cuts amid ongoing Quantitative Easing (QE). Following the Fed’s FOMC decision to hold interest rates, Scott Bessent, the current U.S. Secretary of the Treasury, stated that President Trump’s choice for the Fed chair will be announced in a week or so.
As such, the wider crypto market bullish outlook will shift in the near term for the better catalyzed by imminent capital rotation from the precious metals industry. Moreover, top Wall Street leaders led by Cathie Wood believe that the crypto market is about to enter its parabolic phase of the macro bull market.
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