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As expected, the US Federal Reserve made no changes to interest rates this morning. Despite this widely anticipated decision, which had almost a 100% probability of no cut leading into the announcement, Bitcoin and the broader crypto market experienced significant volatility, beginning to decline within minutes of the news. Within the first 18 minutes, Bitcoin fell 1.43% to $101.3k before rebounding in anticipation of Powell’s speech.
At first, the market reaction wasn’t looking great. A sharp drop followed the expected no rate cut, but Powell's tone proved pivotal. Rather than a hawkish stance, he leaned dovish, signalling that policymakers are in no hurry to lower interest rates further. He emphasised the need for consistent inflation data before considering additional easing and expressed confidence in the current policy stance, citing a strong labour market and expectations of continued inflation progress.
Once the market detected the dovish tone, Bitcoin reversed course and began to rally, reaching a high of $104.7k just an hour later. This shift led to a sea of green across the crypto market. However, Bitcoin’s strength was not entirely mirrored by major altcoins…
The three largest altcoins—Ethereum, Solana, and Ripple—all followed Bitcoin’s rally post-FOMC but struggled to hold gains. Unlike Bitcoin, which is now almost $1,000 higher than yesterday, none of these projects managed to close or trade above their previous day's price levels. A disappointing outcome, but at least the market emerged from this major event relatively unscathed.
Meanwhile, strong projects like Ondo continued to impress, closing over 10% up yesterday. Even Sonic—a fundamentally great project that has underperformed price-wise—saw a 12% daily gain.
Stormrake Spotlight: Ethereum (ETH) ($3,000)
Stormrake Spotlight: Ethereum (ETH) ($3,000)
Ethereum has seen a volatile 24 hours, remaining within its accumulation zone after an attempted breakout was rejected at the top of the range. Now that the FOMC meeting is behind us and Bitcoin is positioned well, we can expect ETH to follow Bitcoin’s momentum. While it may not match Bitcoin in strength, ETH should see positive price action if Bitcoin continues to rally.
BTC/USD Key Levels and Price Action:
BTC/USD Key Levels and Price Action:
The bullish divergence played out perfectly as Bitcoin surged, attempting to break above the key $104k level. This move, fueled by Powell’s slightly dovish tone, marks Bitcoin’s second attempt at clearing this resistance. If BTC can consolidate around this level before reclaiming it, we could see another push towards all-time highs. However, if BTC faces a firm rejection, a move back towards $100k is likely.
For now, structure and momentum remain bullish unless Bitcoin falls below $101.4k. The overall trend is still strong, and with ETF inflows remaining positive, Bitcoin’s ability to hold above this critical level will be key in determining the next move.
BTC Total ETF Flows for 29 Jan: $ +102.2 million
(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)
ETH/USD Key Levels and Price Action:
ETH/USD Key Levels and Price Action:
While Bitcoin challenges a key resistance level, Ethereum continues to struggle with its 55 EMA, having been rejected from it for the fifth time in the last three days. To regain bullish momentum, ETH must break through this moving average resistance. The good news is that ETH has been consistently printing higher lows, a positive sign that buyers are stepping in at higher price points.
If this trend continues, it should only be a matter of time before ETH breaks the 55 EMA and reclaims the $3,207 level. However, failure to do so could see further downside pressure, especially if Bitcoin struggles to hold its gains.
ETH Total ETF Flows for 29 Jan: $ - 19.7 million
(ETF flow data is sourced from https://farside.co.uk/eth/ and reflects figures at the time of writing.)
*All prices are denominated in USD unless stated otherwise*
Written by Alexandar Artis
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