Bitcoin Magazine
Bitcoin Price Fights for $88,000 as Fed Looms and Bearish Technical Pressure Builds
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. The central bank is widely expected to keep interest rates in the 3.50%–3.75% range, but the meeting has drawn unusual scrutiny amid debate over the Fed’s independence.
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.
Crypto markets continue to absorb the impact of continued selloffs, which was exacerbated by forced liquidations across leveraged positions.
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.
Corporate bitcoin accumulation persisted but failed to stabilize sentiment. 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.
The firm now holds 712,647 bitcoin, with the latest purchases financed primarily through its at-the-market equity offering program. These purchases did little to change the bitcoin price.
The company’s aggregate purchase price for its holdings stands at approximately $54.2 billion, including fees and expenses, translating to an average acquisition bitcoin price of $76,037.
Bitcoin price analysis
According to Bitcoin Magazine analysts, the bitcoin price posted a sharp bearish reversal last week, closing the week near $86,588 after failing to hold momentum following a test of $98,000 resistance. The move marked a decisive loss of the $87,000 support level and shifted near-term market control back to sellers.
The $84,000 level is now critical. A sustained daily close below that support could accelerate downside pressure toward the $72,000–$68,000
