Federal Reserve holds policy steady as early rate cut bets vanish and bitcoin stalls

Markets Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Federal Reserve holds policy steady as early rate cut bets vanish and bitcoin stalls The January Fed rate decision capped a sharp reversal in easing expectations, likely among the reasons for crypto's poor price performance. By Sam Reynolds , Shaurya Malwa , Omkar Godbole | Edited by Stephen Alpher Updated Jan 28, 2026, 7:17 p.m. Published Jan 28, 2026, 6:57 p.m. Make us preferred on Google What to know : As expected, the Federal Reserve left interest rates unchanged on Wednesday. Odds of a January cut, which prediction markets had put above 40 percent in mid-November, had fallen to nearly zero by the time of this week's meeting. Chairman Jerome Powell's post-meeting press conference begins at 2:30 pm ET. The Federal Reserve held interest rates steady on Wednesday, a decision that capped a sharp reversal in market expectations that had once favored an early 2026 rate cut. "Job gains have remained low, and the unemployment rate has shown some signs of stabilization," said the central bank in its policy statement . "Inflation remains somewhat elevated." STORY CONTINUES BELOW Don't miss another story. Subscribe to the Crypto Daybook Americas Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms & conditions and privacy policy . There were two dissents to the decision to hold policy steady, with recent Trump appointee Stephen Miran and Chris Waller — reportedly in the running to replace Jerome Powell as Fed chair — each preferring to trim the fed funds rate by 25 basis points. Bitcoin remained just under $89,500 following the expected Fed action, and U.S. stocks were little changed. The U.S. dollar remained sharply higher for the day following yesterday's large decline, and gold continued higher by 3.7%, near record levels at $5,300 per ounce. Just two months ago, traders were split on the outlook, with prediction markets pricing a January cut at more than 40%. By late November, those odds had already begun to fade. Heading into the meeting, the shift was complete. Markets priced in no change at nearly 99%, effectively erasing expectations for near-term easing and cementing the view that the Fed would keep policy restrictive through the first quarter. While the January decision closes the door on early cuts, it has not eliminated expectations for easing altogether. Market participants aren’t expecting the Fed to resume rate cuts at its next meeting in March, with CME FedWatch placing the odds at just 16%. Chances are a bit higher in April, rising to about 30%. “The U.S. Federal Reserve’s decision to hold interest rates reflects persistent inflation concerns and a stabilizing economic backdrop, likely resulting in near-term volatility for crypto markets as liquidity remains supportive," Nick Ruck, Director of LVRG Research, said in a Telegram message. “If Chair Powell’s press conference conveys a cautious ‘higher-for-longer' stance or hints at fewer cuts ahead in 2026, we could see short-term pressure on risk assets, including bitcoin." Investors will now look to Jerome Powell’s post-meeting press conference at 2:30 pm ET for clues about the central bank’s thinking. Federal Reserve FOMC Interest Rates Bitcoin News Breaking News top news More For You Pudgy Penguins: A New Blueprint for Tokenized Culture By CoinDesk Research Dec 30, 2025 Commissioned by Pudgy Penguins Pudgy Penguins is building a multi-vertical consumer IP platform — combining phygital products, games, NFTs and PENGU to monetize culture at scale. What to know : Pudgy Penguins is emerging as one of the strongest NFT-native brands of this cycle, shifting from speculative “digital luxury goods” into a multi-vertical consumer IP platform. Its strategy is to acquire users through mainstream channels first; toys, retail partnerships and viral media, then onboard them into Web3 through games, NFTs and the PENGU token. The ecosystem now spans phygital products (> $13M retail sales and >1M units sold), games and experiences (Pudgy Party surpassed 500k downloads in two weeks), and a widely distributed token (airdropped to 6M+ wallets). While the market is currently pricing Pudgy at a premium relative to traditional IP peers, sustained success depends on execution across retail expansion, gaming adoption and deeper token utility. View Full Report More For You Paxos' gold token rakes in record inflows as crypto investors turn to the yellow metal By Krisztian Sandor | Edited by Stephen Alpher 17 minutes ago Tokenized gold has improved the traditional store of value metal's utility, while bitcoin trades like a risk asset amid uncertain times, one expert noted. What to know : Paxos Gold (PAXG) posted a record inflow of $248 million in January, boosting its market cap to $2.2 billion. The tokenized gold market crossed $5.5B as investors seek stable value amid crypto stagnation. The moves occurred as gold prices surged to new records above $5,300. 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