According to DecryptMedia, Bitcoin's performance is falling behind the growth of the global money supply as rising energy costs and higher interest rates create headwinds for the cryptocurrency. These economic factors are impacting mining profitability and investor sentiment, potentially influencing trading dynamics for BTC.

According to Santiment, there has been a significant sentiment shift in the past 24 hours regarding interest rates, with the crowd transitioning from a bearish to a bullish outlook. This change in narrative could influence market behavior leading up to the next interest rate decision.

According to Santiment (@santimentfeed), the latest FOMC meeting concluded with interest rates remaining steady at 3.50-3.75%. Despite no immediate changes, traders are anticipating a bullish relief rally, as bearish price action occurred prior to the announcement. Expectations for rate cuts are projected for 2026 and 2027, influencing market sentiment.

According to the source, Bitcoin (BTC) and Ethereum (ETH) experienced fluctuations following the Federal Reserve's announcement to maintain current interest rates. This decision has introduced uncertainty into the cryptocurrency market, with traders closely watching for potential implications on liquidity and investment flows.

According to @StockMKTNewz, the market is currently forecasting just one interest rate cut in both 2026 and 2027. This development reflects cautious expectations for monetary policy adjustments and could influence long-term investment strategies in equities and fixed-income securities.

According to Andre Dragosch, the Fed's current stance on interest rates may be misaligned with the latest disinflationary trends. Dragosch highlights that real-time Truflation data has dropped to approximately 1.1%, suggesting official CPI could fall below 2% in the coming months. He argues that the Fed might be overtightening while markets are already pricing in significant rate cuts for 2026, potentially requiring adjustments sooner than expected.

According to @StockMKTNewz, Kalshi has projected probabilities for Federal Reserve rate cuts in 2026. The platform assigns a 25% chance for two rate cuts, 24% for three rate cuts, and 17% for a single rate cut. These predictions could influence trading strategies depending on expected monetary policy adjustments.

According to @BullTheoryio, the US unemployment rate has come in at 4.3%, slightly lower than the expected 4.4%. This improvement in the labor market indicates a healthier economy, which could reduce the likelihood of interest rate cuts in 2026, affecting long-term investment strategies.

According to Michaël van de Poppe (@CryptoMichNL), Bitcoin (BTC) is approaching a potential higher low as market conditions evolve. He notes that a rising unemployment rate may push the Federal Reserve towards cutting interest rates, which could lead to declining yields. While Gold and Silver are expected to experience short-term declines, Bitcoin may see a slight dip before rallying later this month. Van de Poppe suggests that monetary easing could soon resume, potentially impacting crypto markets favorably.

According to @KobeissiLetter, the US Financial Conditions Index has declined to 98.3, marking the lowest level since early 2022. According to @KobeissiLetter, financial conditions have been in a firm downtrend for roughly 3.5 years. According to @KobeissiLetter, the Federal Reserve has cut rates by 175 basis points since September 2024, bringing the policy rate to 3.75%.

According to Gary Black, US stocks fell and Treasury yields rose as President Trump prepared to nominate Kevin Warsh as the next Federal Reserve chair. According to Gary Black, Warsh is viewed as more hawkish on monetary policy and inflation than other contenders, contradicting Trump’s push for lower interest rates. According to Gary Black, the confirmation path may be complicated because Senator Thom Tillis vowed to block any Trump Fed nominees until an investigation into the central bank’s renovation is resolved. According to Gary Black, Trump is expected to announce his choice for Fed chair on Friday morning.

According to @AggrNews, Donald Trump has narrowed the Federal Reserve Chair selection to Kevin Warsh and Rick Rieder and is leaning toward Warsh, with the update attributed to reporting via @rachaelmbade (source: @AggrNews). According to @AggrNews, Trump has ruled out Kevin Hassett for the role (source: @AggrNews). According to @AggrNews, Trump met both Warsh and Rieder at the White House and plans to announce the pick tomorrow morning (source: @AggrNews). Given the timing reported by @AggrNews, headline risk into the announcement window could affect USD, Treasury futures, and equity index futures as rate expectations and liquidity sensitivity come into focus (source: @AggrNews).

According to @GreeksLive, the first monthly options expiration of 2026 arrives tomorrow with over 25% of options positions set to expire. According to @GreeksLive, the Federal Reserve left interest rates unchanged and there are no major near-term catalysts, keeping price action stable with implied volatility muted into expiry. According to @GreeksLive, this setup indicates a steady tape around the expiration window with IV remaining compressed.

According to @GreeksLive, futures pricing assigns over a 95% probability that the Federal Reserve will maintain the policy rate at 3.75% with no cut. According to @GreeksLive, gold has posted new highs again and leadership is rotating among major speculative markets ahead of the announcement.

According to @garyblack00, online bettors have increased the probability that BlackRock CIO Rick Rieder will be nominated as the next Fed Chair to about 35%, compared with 42% for Kevin Warsh, with Rieder viewed as dovish and Warsh as more hawkish (source: @garyblack00). According to @garyblack00, a Rieder nomination would likely be received favorably by markets because his stance implies further interest rate cuts, a setup traders monitor when positioning in risk assets including Bitcoin (BTC) and Ethereum (ETH) (source: @garyblack00).

According to Charlie Bilello, the Fed has matched market expectations at every FOMC since 2009, and the bond market is pricing only a 2.8% chance of a rate cut heading into the meeting (source: Charlie Bilello on X). According to Charlie Bilello, the committee is expected to hold the policy rate at 3.50–3.75% with no cut, a setup traders can use as a baseline for positioning in risk assets including BTC and ETH into the event (source: Charlie Bilello on X).

According to Charlie Bilello, derivatives pricing implies less than a 3% chance of a Fed rate cut at the upcoming FOMC meeting, and he argues the probability should be zero given credit and equity markets at all-time highs and inflation running above the Federal Reserve’s 2% objective over the past decade (source: Charlie Bilello on X; source: Federal Reserve). This points traders toward a higher-for-longer baseline when calibrating risk exposure in Bitcoin (BTC), Ethereum (ETH), and other liquidity-sensitive assets into the policy decision and communication (source: Charlie Bilello on X).

According to Edward Dowd, the call from Treasury Secretary Bessent was heeded, source: Edward Dowd on X. Japan’s central bank kept its key policy rate at 0.75% as the country prepares for a snap election on Feb 8, source: CNBC International. The BOJ upgraded GDP forecasts to 0.9% for fiscal year 2025 and 1.0% for fiscal year 2026, source: CNBC International. Board member Hajime Takata proposed raising the policy rate to 1%, but the motion was defeated, source: CNBC International. The source report contained no cryptocurrency-specific guidance, source: CNBC International.

According to @CoinMarketCap, Bitcoin briefly reclaimed 96,000 dollars after the December CPI report came in line with expectations, source: @CoinMarketCap. CME FedWatch shows a 98.3 percent probability that interest rates will remain unchanged in January, source: @CoinMarketCap.

According to @CNBC, the latest Federal Reserve meeting offered several market-friendly points while warning of policy restraint, as reflected in the CNBC Daily Open headline, which shapes the near-term risk tone across assets. source: CNBC CNBC frames the setup as supportive but cautious, directing traders to focus on interest-rate expectations, Treasury yields, and the U.S. dollar—key drivers of risk appetite and liquidity that affect crypto markets including BTC and ETH. source: CNBC