$BTC

I read about BTC and found that Bitcoin has been stuck in a persistent downtrend since mid-January 2025. Prices have slid from recent highs, with renewed selling pressure hitting hard. Right now, as of late January 2026, BTC is hovering around $88,000–$89,000 (spot prices recently near $89,000–$89,100, with some sessions dipping toward $86,000–$87,000 over the weekend—the lowest we've seen this year so far).

A big factor behind this weakness seems linked to geopolitical and macro shifts. U.S. President Donald Trump issued sharp tariff threats against Canada, warning of 100% duties on Canadian goods if Ottawa pursues any deeper trade ties or "deal" with China. Canadian officials (including PM Mark Carney) clarified there's no full free trade agreement in the works—just targeted resolutions on tariffs for things like electric vehicles and agriculture—but the tough rhetoric still rattled markets. This helped drive a notable weakening in the U.S. dollar, with the DXY dropping to around 96 (its lowest since early 2022).

That softer dollar triggered strong safe-haven buying in precious metals. Gold has surged to record highs, recently hitting peaks above $5,100–$5,180 per ounce, while silver pushed to new levels in the $110+ range during volatile moves. Investors are rotating into these traditional hedges amid all the uncertainty around U.S. trade policies, potential government shutdown risks, and wider global tensions.
Unfortunately, this capital rotation has hurt crypto. Riskier assets like Bitcoin saw outflows, including heavy redemptions from spot BTC ETFs (some reports noted over $1 billion+ in a short period). It highlights how, during dollar stress and geopolitical drama, classic havens like gold can steal the spotlight from digital assets temporarily.
On the technical side, Bitcoin is under pressure but starting to show signs of stabilization. The price is approaching the $90,000 zone from below—once strong resistance, now potentially flipping to support. On the 4-hour chart, a bullish setup has formed, which could hint at a short-term reversal if buyers step up and defend this area with fading downside momentum.
Adding to the mix is today's Federal Reserve meeting. Markets are widely expecting the Fed to hold interest rates steady (in the 3.50%–3.75% range), taking a pause after earlier cuts to evaluate fresh data on inflation, jobs, and growth. No rate cut is priced in, but the statement and Jerome Powell's press conference could provide hints about future moves—or add more uncertainty if policy risks linger under the current administration.

In the end, Bitcoin's near-term direction depends on whether these macro headwinds start to fade. A solid rebound above $90,000 could help regain momentum, particularly if dollar weakness keeps boosting alternatives. But if the rotation into gold/silver continues or new trade escalations pop up, we could see tests of lower supports around $87,000 (like the 100-week MA) or even below. Keep an eye on ETF flows, on-chain data, and Fed signals—volatility is still very much in play here.