Bitcoin Stays Flat as Fed Holds Rates Steady and Powell Avoids Politics

Jan 29, 2026, 2:43 AM

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Bitcoin's price held steady at approximately $89,170 per coin on Wednesday, following the Federal Reserve's announcement to maintain interest rates at their current level. This decision was widely anticipated, and traders had already factored it into the market. However, the leading cryptocurrency faced a slight decline of over 1% over the past week.

During a press conference, Fed Chair Jerome Powell did not address the ongoing political tensions, particularly regarding his relationship with President Donald Trump and a Justice Department investigation into his conduct. When questioned about these issues, Powell stated, "I have nothing for you on that today," emphasizing his focus solely on inflation-related matters.

The Federal Reserve's decision to keep interest rates unchanged aligns with its strategy to assess future economic data before making any policy shifts. Powell indicated that the central bank is not prepared to cut rates as it evaluates the broader implications of fiscal policies, including the impact of Trump's tariffs on inflation.

Despite the stable interest rate environment, Bitcoin traders are looking for bullish signals that could arise from political developments rather than monetary policy adjustments. Gabe Selby, head of research at CF Benchmarks, noted that "near-term bullish catalysts for Bitcoin remain intact but are increasingly political rather than monetary".

Market analysts are closely monitoring Powell's term, which is set to expire in May, as the president is expected to nominate a successor soon. This upcoming change in leadership could lead to a more dovish approach on interest rates, which would likely influence Bitcoin's price. Selby commented that a nominee perceived as supportive of preserving Fed independence while facilitating quicker rate cuts could rapidly shift market expectations.

The current economic climate has made it essential for Bitcoin investors to remain vigilant. Historically, Bitcoin tends to perform well in low interest rate scenarios, and traders are keen on any signals that the Fed might lower rates in future meetings. Speculation around Powell's potential successor could add volatility to Bitcoin's price in the coming weeks, especially if the new chair adopts a more accommodating stance on interest rates.

As investors digest Powell's comments and their implications, Bitcoin's stability in the face of unchanged rates illustrates the cryptocurrency's sensitivity to broader economic and political factors. Moving forward, the interplay between the Fed's monetary policy and political developments will be crucial in shaping the future trajectory of Bitcoin and other cryptocurrencies in the market.

In conclusion, while Bitcoin remains flat post-Fed announcement, the market's focus shifts to forthcoming political developments and their potential impact on monetary policy. Investors will be watching closely for any indications that could affect Bitcoin's performance in the coming months.

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