FOMC Rate Decision: Bitcoin Braces for Volatility as Gold Hits $5,300

The financial markets are on edge as the Federal Open Market Committee (FOMC) prepares to announce its interest rate decision today, January 28, at 2 p.m. ET. While the consensus among analysts is a "pause," keeping the Fed interest rate in the 3.50%–3.75% range, the spotlight is firmly on the crypto-to-gold correlation and the impending market volatility.

Bitcoin vs. Gold: The "Digital Gold" Divergence

In a surprising turn of events, the traditional "safe haven" and its digital counterpart are moving in opposite directions. Gold has officially smashed the $5,300 barrier, gaining over 17% in January 2026 alone. Meanwhile, $Bitcoin has struggled to maintain its momentum, trading around $87,900—roughly 30% below its previous all-time highs.

BTC/USD 2H - TradingView

This divergence suggests that while institutional capital is flocking to physical metals amid geopolitical uncertainty and U.S. dollar weakness, the crypto market remains in a "defensive" posture. For investors looking to secure their assets during this period of uncertainty, comparing the latest hardware wallets is a crucial step in risk management.

Why Today’s FOMC Meeting Matters for Crypto

Historically, FOMC weeks are notoriously bearish for the crypto sector. Data from 2025 shows that Bitcoin saw significant pullbacks after seven out of eight meetings. Traders are currently pricing in only a 2.8% chance of a rate cut today, meaning the volatility will likely stem from Jerome Powell's press conference at 2:30 p.m. ET.

• Hawkish Tone: If Powell suggests that rates will stay "higher for longer" to combat sticky inflation, we could see Bitcoin test support levels near $85,000.
• Dovish Tone: Any hint of a "politicized pivot" or future easing could trigger a massive short squeeze, potentially pushing $BTC back toward the $100,000 psychological milestone.

Trading the Volatility: What’s Next?

The current market setup is characterized by cooling leverage and ETF outflows, indicating that "smart money" is waiting for clarity. If you are planning to trade the post-Fed price action, ensure you are using a platform with deep liquidity. You can check our exchange comparison to find the best fees for high-volatility days.

As the 2 p.m. deadline approaches, stay updated with the latest movements on our crypto news page. For external macro data, Bloomberg and the CME FedWatch Tool offer real-time probability shifts that often precede the actual announcement.

Disclaimer: This article is a news report and price analysis. It does not constitute financial advice. Cryptocurrency investments carry high risk, especially during major macroeconomic events like FOMC meetings. Always consult with a professional financial advisor before trading.