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Bitcoin Plunges Below $100K as FOMC Looms

Coin WorldMonday, Jan 27, 2025 5:57 am ET

1min read

Bitcoin (BTC) Price: Bitcoin (BTC) Retreats to $99,000 as FOMC Meeting Looms

Bitcoin (BTC) breaks below $100,000 to start the last week of January as US stocks feel the heat from an AI showdown. BTC/USD takes a turn for the worse as stocks futures tumble, sparking a new BTC price crash warning. The downside comes at an already tense time for risk assets with the Federal Reserve due to decide on interest rate changes. The rise of Chinese AI startup DeepSeek sends shockwaves through markets as doubts arise over ChatGPT competitiveness. Bitcoin derivatives markets look increasingly understandable for their cautious stance in recent weeks. Short-term holders risk revisiting key price levels which would send them into unrealized loss.

BTC price drops with stocks to start tense week

Bitcoin denied bulls both a historic weekly close and a strong start to the last week of January as a US stocks rout spilled over into crypto markets. BTC/USD dropped up to 4% on Jan. 27, reflecting tumbling stocks futures. In so doing, Bitcoin gave up the $100,000 mark once more, reaching ten-day lows. Market analysts suggested that this downward trend reflects a broader apprehension in risk assets, especially in light of a pending decision from the Federal Reserve on interest rates. “Investors are worried about how macroeconomic factors are impacting digital assets. The correlation between Bitcoin and US equities continues to be a critical point of focus,” noted strategies from Cointelegraph Markets Pro.

FOMC offers little chance of interest rate cut

The Federal Reserve dominates the macro radar this week as officials decide the future path of interest rates. The Federal Open Market Committee (FOMC) is widely expected to pause an incremental rate-cutting spree that began in mid-2023 due to inflation markers rebounding across the board. The latest estimates from CME Group’s FedWatch Tool put the odds of even a small 0.25% cut on Jan. 29 at just 0.5%. Pressure on the Federal Chairman Jerome Powell is expected to intensify following calls from key political figures for immediate revisions to fiscal policies, particularly in response to ongoing inflation metrics that show no signs of abating. “Investors are waiting to interpret any guidance from Powell’s

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