**Market Brief: Bitcoin Slips as Fed Holds Steady** **January 29, 2026** **Macro Backdrop & Fed Decision** The Federal Reserve maintained interest rates at **3.5% – 3.75%** yesterday, opting for stability over easing. While widely expected, the decision dampened risk appetite, triggering a "sell-the-news" reaction across digital assets. Market sentiment is further strained by capital rotating into traditional safe havens, with gold prices surging to record highs above **$5,000/oz** and diverting liquidity away from crypto markets. **Bitcoin & Market Performance** Bitcoin continues to struggle below key resistance, currently trading near **$88,000**. The asset dipped approximately **1.1%** in the last 24 hours, testing support levels around **$87,800**. Failure to reclaim the **$90,000** threshold has reinforced bearish short-term technicals. Ethereum faced steeper selling pressure, dropping roughly **2.8%** to trade around **$2,920**. The decline pushed ETH back below the psychological **$3,000** mark, validating a bearish breakdown from its recent consolidation pattern. The broader cryptocurrency market capitalization contracted by **1.68%** to **$2.98 trillion**, shedding billions in valuation as altcoins mirrored the weakness in majors. **Institutional Flows & Sentiment** Institutional demand has cooled significantly. After brief inflows earlier in the week, U.S. spot Bitcoin ETFs registered net outflows exceeding **$100 million** on Tuesday. This reversal highlights growing caution among traditional investors who are closely monitoring the Federal Reserve's "wait-and-see" stance on future rate cuts. **Key Levels to Watch** * **Bitcoin:** Immediate support sits at **$87,000**, with major resistance remaining firm at **$90,000**. * **Ethereum:** Needs to reclaim **$3,065** to invalidate the current bearish trend; downside targets loom near **$2,250** if selling persists. *** *Data as of January 29, 2026.*