Crypto markets caught some relief on Wednesday morning, Jan. 28, with Bitcoin briefly climbing back above the $90,000 level as traders positioned themselves ahead of the Federal Reserve’s policy decision later today.
Bitcoin (BTC) was trading around $89,500 at press time, up nearly 2% over the past 24 hours and flat on the weekly timeframe.
BTC’s rally came as the U.S. Dollar Index (DYX) dropped yesterday, after U.S. President Donald Trump commented to reporters that he’s not concerned about the dollar’s recent weakening. The value of the dollar, per DYX, is down 10.4% over the past year since Trump took office.
Ethereum (ETH) saw a slightly stronger rally, up 2.6% on the day back above the $3,000 level after several sessions of consolidation. All of the other top-10 tokens by market value were up on the day, except TRON, which fell about 1%.
The total crypto market capitalization stood at roughly $3.11 trillion, up 1.4% over the past 24 hours.
Next Move
Despite the price bounce, on-chain data suggests institutional conviction remains weak.
Glassnode analyst Chris Beamish wrote in an X post on Tuesday, Jan. 27, that Ethereum is still trading within a dense cost basis cluster, a key breakeven zone for many holders.
“Holding here suggests absorption and base building,” Beamish wrote, adding that a breakdown could push ETH into thinner support where underwater supply may look to derisk. “The next move hinges on this level.”
According to the Crypto Fear & Greed Index, investor sentiment remains in the “fear” zone as traders stay cautious despite the market’s recent bounce.
Big Movers and Liquidations
Looking at the top-100 assets by market cap, Hyperliquid’s HYPE token led gains again, jumping 18% over the past 24 hours. Canton (CC) followed, rising about 8% on the day.
On the downside, RIVER extended its pullback, falling nearly 25% to rank as today’s worst performers, followed by Midnight (NIGHT), which slipped just 5.4%.
Leading trending assets on CoinGecko today is BIRB, the native token of the Moonbirds NFT ecosystem, which launched earlier today and is now up over 100% since it debuted.
Liquidations jumped as prices pushed higher. CoinGlass data shows about $315 million in leveraged positions were wiped out over the past 24 hours, with short sellers taking most of the hit.
Roughly $250 million in shorts were liquidated, compared with about $64 million in longs. Ethereum led the way with nearly $95 million in liquidations, followed by Bitcoin at $92.3 million, while HYPE saw around $26.4 million wiped out.
ETFs and Macro Conditions
On Tuesday, Jan. 27, spot exchange-traded funds (ETFs) flipped back to outflows. SoSoValue data shows spot Ethereum ETFs saw $63.5 million in net outflows on Jan. 27, even as total net assets climbed to $18.15 billion due to higher prices.
Spot Bitcoin ETFs recorded heavier selling, with $147.4 million in net outflows on the day, though total net assets still rose to nearly $115 billion.
On the macro front, attention remains squarely on the Federal Reserve’s policy announcement due Wednesday afternoon. Markets see virtually no chance of a rate move, with the benchmark rate expected to remain unchanged, CNBC reports.
Analysts at QCP Capital said in today’s research note that the focus is less on the decision itself and more on how Chair Jerome Powell frames the path ahead.
“The base case is rates unchanged, with the market focused on when cuts can resume,” QCP wrote, noting that inflation remains above target even as labor market conditions soften.
