Why Is Crypto Down Today? Bitcoin Coils Below $88k As Market Waits For Q4 GDP Data

[Ben Graham]

Bitcoin slipped back below the $90,000 mark on Thursday as traders reacted to the Federal Reserve’s first rate decision of 2026.

The largest cryptocurrency is trading near $87,700, after briefly moving above $90,000 earlier in the day. 

The wider crypto market also edged lower before and after the Fed announcement.

The US central bank kept interest rates unchanged in the 3.50%–3.75% range. Officials repeated that future moves will be decided “meeting by meeting.”

That message failed to calm markets and kept risk assets uneven.

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Why Is Bitcoin Struggling Near $88,000 as Traders Shift Toward Gold and Silver?

CoinGecko data showed total crypto market value at about $3.11 trillion, down roughly 0.1% over the past 24 hours. Bitcoin was close to flat on the day but struggled to hold higher levels.

Ethereum traded near $3,000 after a small pullback, reflecting the cautious mood across major tokens.

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Bitcoin’s trading range has tightened again after a sharp swing that took it from an early-year push toward $98,000 down to the $86,000 zone. 

Market Cap

24h 7d 30d 1y All Time

The market then settled back into the high-$80,000s, where it has held for most of the week.

A note from Investing.com described the move as a rally that “unwound aggressively back below 90,000,” with spot prices now “fluctuating around 88,000–88,500” as money shifts toward metals.

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Can Bitcoin Reclaim $90,000 as Fed Rate Timing and Leverage Risks Hang Over the Market?

“Macro traders are staring at Powell,” a desk strategist told Yahoo Finance, saying the timing of the first rate cut in 2026 matters more than this week’s hold.

The key test now is simple: can Bitcoin settle back above $90,000, or does risk-off sentiment push the market deeper into the correction that began before the Fed meeting?

Ali Martinez, a crypto analyst, said markets are still adjusting after October’s deleveraging, which reduced risk appetite across exchanges and market makers. 

https://t.co/3JqODygEir

— Ali Charts (@alicharts) January 28, 2026

He added that fundamentals look stronger and institutional interest is still building, even as capital moves toward rising gold and silver prices. 

And historically, strength in metals tends to show up before crypto picks up again, not instead of it.

Rising leverage across Bitcoin markets is setting up a major liquidation risk on both sides of the trade. 

Analyst Ted said nearly $13.29 billion in short positions would be wiped out if Bitcoin rallies to $105,000. 

$13,290,000,000 in shorts will get liquidated if $BTC hits $105,000.

$13,500,000,000 in longs will get liquidated if Bitcoin hits $75,000.

Which one do you think will happen first? pic.twitter.com/9QheNmSCQO

— Ted (@TedPillows) January 28, 2026

On the downside, about $13.5 billion in long positions face liquidation if BTC drops to $75,000. The figures highlight how tightly positioned traders remain as Bitcoin trades near key levels.

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Key Takeaways

• The largest cryptocurrency traded near $89,000 by evening, after briefly moving above $90,000 earlier in the day. 
  
• Bitcoin’s trading range has tightened again after a sharp swing that took it from an early-year push toward $98,000 down to the $86,000 zone.
  

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