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Markets

Federal Reserve Signals Delay in Rate Cuts Affecting Crypto Markets

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Key Points:
  • The Federal Reserve hints at pausing rate cuts, impacting crypto markets.
  • Bitcoin price sees volatility with this potential delay.
  • Ethereum and altcoins also experience increased market fluctuations.

Federal Reserve Chair Jerome Powell highlighted the U.S. economy’s strength on January 29, signaling a pause in rate cuts, affecting financial markets including cryptocurrencies.

Powell’s stance on interest rates influences risk sentiment, impacting Bitcoin and Ethereum prices amid expectations of delayed policy shifts, tied to rising commodity prices.

Analysts and Market Reactions to Fed’s Rate Decision

Analyst Ryan Djajasaputra of Investec remarked on Powell’s statement, citing the Fed’s no urgency in altering current policies despite a robust U.S. economy. Powell stressed the need to witness more inflation progress, attributing commodity price increases mainly to tariffs. As Djajasaputra noted, “There is no short-term policy rush and the current policy is not overly tight given the strength of the U.S. economy.”

Immediate implications of this potential rate cut pause were seen with Bitcoin, Ethereum, and Solana experiencing volatility. Market shifts were notably sharp, as outlined by on-chain data showing significant movements from cryptocurrency whales.

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Market actors and analysts offered diverse reactions. While industry figures remained silent on Powell’s direct comments, Binance CEO CZ noticed significant speculation and interpretation of the news among community forums. Developers and founders of Solana, interestingly, interacted with mock tweets on social media amidst market movements.

Market Data and Trends

Did you know? The Federal Reserve’s decisions on interest rates can have a profound impact on the cryptocurrency market, influencing investor sentiment and liquidity conditions.

On January 29, CoinMarketCap reported Bitcoin’s price at $87,885.58, experiencing a 2.22% dip over 24 hours. Market Cap and Fully Diluted Market Cap figures stand at $1.76 trillion and $1.85 trillion, respectively. Current dynamics include a noted 43.58 billion in 24-hour trading volume, signifying broader market unease.

bitcoin-daily-chart-5945
Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 12:08 UTC on January 29, 2026. Source: CoinMarketCap

The Coincu research team noted that the deterred rate cut could maintain economic variables that influence crypto valuations, primarily through changing investor sentiments and liquidity conditions. They emphasize the need for investors to monitor regulatory settings closely and consider their implication on long-term market strategies.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Avatar of Elena Zenth

Elena Zenth

29 January 2026, 12:14:00 GMT +0000

Elena Zenth is a veteran cryptocurrency journalist with over a decade of experience covering stablecoins, exchange activity, and blockchain trends. At Coincu.com, she turns on-chain data and trading insights into clear, actionable stories for everyday readers. Former contributor to CoinTelegraph, Elena is known for her bold, fact-driven journalism and investigative deep-dives exposing fraud and emerging tech in the crypto space.

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