"The bitcoin price steadied a bit today after an early slide to $86,000 over the weekend, as traders weighed Federal Reserve risk, heavy recent liquidations, and growing technical pressure. The largest cryptocurrency was up about 1% at $87,850 by midafternoon, after falling as low as $86,000.13 earlier in the session. Price action remained volatile, with market participants cautious about sharp reversals following a weekend selloff. Attention is now centered on the Federal Reserve's policy decision due Wednesday."
"Recently, President Trump's administration escalated its fight with Federal Reserve Chair Jerome Powell by starting a rare criminal-investigation threat tied to Powell's oversight of a big Fed renovation project. At the same time, Trump is pushing to reshape the central bank leadership as Powell's term ends this spring, drawing legal pushback (including a Supreme Court case over Trump's attempt to remove a Fed governor) and sparking a broader debate over the Fed's independence from politics."
"U.S.-listed spot bitcoin exchange-traded funds remained a source of pressure. Spot bitcoin ETFs recorded $1.33 billion in net outflows in the week ending Jan. 23, marking the largest weekly outflow in nearly a year. The redemptions have contributed to selling pressure amid already fragile market conditions. Strategy., the software company that has shifted toward a leveraged bitcoin acquisition strategy, disclosed in a recent SEC filing that it purchased 2,932 bitcoin between Jan. 20 and Jan. 25 for approximately $264.1 million, paying an average of $90,061 per coin."
Bitcoin prices stabilized near $87,850 after sliding to $86,000, with trading remaining volatile and participants cautious about sharp reversals. Markets are awaiting the Federal Reserve's policy decision Wednesday, when rates are widely expected to stay at 3.50%-3.75%, amid heightened scrutiny of Fed independence. Political pressure escalated with a rare criminal-investigation threat tied to Jerome Powell's oversight of a Fed renovation and efforts to reshape central bank leadership, prompting legal pushback. Crypto markets faced forced liquidations and heavy selling from U.S.-listed spot bitcoin ETFs, which recorded $1.33 billion in outflows in the week ending Jan. 23. Corporate accumulation continued with a firm buying 2,932 bitcoin for about $264.1 million at an average $90,061 per coin, but sentiment remained fragile.
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