US regulator provokes recovery of the cryptocurrency market

Bitcoin BTC $88,468.30 Mezo Wrapped BTC 1.85% Market capitalization $52.05 million VOL. 24 hours $1.15 billion traded near $ 89,000 on Wednesday, January 28, continuing to fluctuate in a narrow range ahead of the US Federal Reserve’s interest rate decision. In Asian trading, BTC was near $ 88,800, with a slight increase on the day after a volatile start to the week, according to CoinGecko data.

Ethereum ETH $3,007.96 Bridged Ether (StarkGate) 4.06% Market capitalization $68.57 million VOL. 24 hours $1.27 billion rose by about 2% to just below $ 3,000, and most major altcoins also showed slight gains. Such market movements are assessed as cautious, as participants are waiting for clearer signals from major financial markets.

The general mood on the crypto market was reflected in broader financial markets: global stocks continued to rise, Asian indices updated their historical highs, and US index futures had a positive trend after the S&P 500 closed at a new peak the day before. Technology companies led the way, driven by optimism about artificial intelligence spending and a series of earnings reports from large corporations.

The US dollar stabilized somewhat after falling to its lowest level since early 2022 earlier this week. The weakening dollar supported the rally in gold and silver, but cryptocurrencies are still lagging behind this trend. Analysts at the CoinSwitch crypto exchange noted that the drop in the dollar index to around 95.5 made risky assets more attractive, and this contributed to the rebound of BTC from below $ 88,000 to around $ 89,300.

Traders are closely watching to see if the Fed will confirm the expected pause in rate hikes and whether comments on inflation and future policy will affect the dynamics of risk assets. In addition, the Magnificent Seven earnings season (seven leading tech companies) may also affect investor confidence and capital reallocation between equities and crypto assets.

At the moment, Bitcoin is holding its ground rather than moving in a broader trend, which indicates a stage of stabilization rather than a strong trend movement amid a number of important macroeconomic events.