On January 28, 2026, Federal Reserve Chair Jerome Powell will speak following the FOMC January meeting and for crypto, this event carries real downside risk.
While benchmark interest rates are widely expected to remain unchanged, the decision itself isnāt the issue.
The language is. The tone is. The forward guidance is.
What Powell is expected to cover:
š¹ The economic rationale behind holding rates steady
š¹ The Fedās latest read on inflation trends
š¹ Labor market strength vs. cooling signals
š¹ Forward guidance on when and if rate cuts are coming
š¹ How current data reshapes the Fedās risk balance
ā ļø Why this is bearish for crypto:
ā¢ Sticky inflation keeps the Fed cautious
ā¢ A strong labor market delays rate-cut expectations
ā¢ āHigher for longerā messaging = tight liquidity
ā¢ Tight liquidity historically pressures $BTC , alts, and leverage
š Crypto doesnāt fall because rates stay the same
It falls when hope gets repriced.
If Powell emphasizes:
Inflation risks
Data dependency
No urgency to ease
Expect:
ā¢ Risk-off sentiment
ā¢ Funding rate volatility
ā¢ Long liquidations
ā¢ Alts underperforming BTC
š This is a narrative event, not just a rate decision.
Markets are positioned for easing Powell may remind them patience isnāt over yet.
Stay defensive. Protect capital. Liquidity rules the market.
