Bitcoin, Ethereum, Dogecoin prices surge, XRP remains stable before Fed rate cut announcement
January 28, 2026
Cryptocurrencies experienced a surge in prices on Tuesday, aligning with gains seen in the stock market and precious metals as investors prepare for the Federal Reserve’s upcoming policy decision. Bitcoin saw an increase to over $89,000, while Ethereum broke the $3,000 mark amidst a broader market rally. Institutional buying played a significant role in boosting Ethereum’s value, with shares of crypto-related companies like Strategy Inc. and Bitmine Immersion Technologies Inc. also showing positive growth.
Notably, there was a liquidation of nearly $300 million from the cryptocurrency market in the last 24 hours, with a substantial portion coming from leveraged short positions. Despite this, Bitcoin’s derivatives market witnessed a surge in open interest, rising by 3.12% within the same timeframe. The market sentiment, as indicated by the Crypto Fear & Greed Index, still leans towards “Fear.”
Meanwhile, several cryptocurrencies with a market capitalization exceeding $100 million experienced notable gains in the past 24 hours. Pippin, Concordium, and Kinetiq Staked HYPE were among the top performers, with gains ranging from 26.49% to 58.21%. Overall, the global cryptocurrency market capitalization climbed back above $3 trillion, showing a 1.33% increase.
Stock markets also saw positive movement on Tuesday, with the S&P 500 reaching a new record high of 6,978.60, while the Nasdaq Composite and Dow Jones Industrial Average also showed upward trends. Precious metals rebounded following a drop on Monday, with gold hitting a new all-time high of $5,174 per ounce and spot silver rallying to $113.91 per ounce.
Investor focus now shifts to the Federal Reserve’s policy decision scheduled for Wednesday. The CME FedWatch tool indicates a high probability of rates remaining steady at 3.5%-3.75%. Amidst these developments, analysts and traders are closely monitoring Ethereum’s performance relative to Bitcoin. Arthur Azizov emphasized Bitcoin’s nature as a risk asset that may underperform in uncertain times, projecting consolidation around the $85,000-$88,000 zone. On the other hand, Michael van de Poppe highlighted Ethereum’s rapid turnaround against Bitcoin on the ETH/BTC chart, suggesting it’s holding a key support level and signaling further positive momentum.
Overall, the current market dynamics, including the rally in cryptocurrencies, stocks, and precious metals, indicate a climate of optimism as investors await the Fed’s decision. As Ethereum continues to show strength against Bitcoin, market participants are closely watching for further developments and potential opportunities in the cryptocurrency space.
