$ETH The crypto market experienced a 1.7% decline in total cap on January 29, 2026, with Bitcoin dropping to around $87,500 from over $90,000 highs, driven by macroeconomic caution and external shocks.
Fed Rate Stance
The US Federal Reserve held interest rates steady at 3.50%-3.75% in its first 2026 decision, with Chair Powell signaling no imminent cuts until later in the year, dashing hopes for liquidity boosts and prompting risk-off moves.
Geopolitical Tensions
Fears of US President Donald Trump ordering strikes on Iran over its nuclear program escalated, with Polymarket odds rising sharply; threats include responses targeting Israel, US bases, and the Strait of Hormuz, pushing investors to gold over crypto.
Tech Earnings Impact
Microsoft's Q4 results disappointed, showing Azure cloud growth slowing to 37% from 38% amid surging AI spend, causing a 7% stock plunge and broader risk aversion as it signals potential AI hype cooldown affecting NVIDIA and tech.
Technical and Sentiment Factors
Bitcoin and Ethereum formed bearish flag patterns below key supports ($90K for BTC, $3K for ETH), with 90% of top coins down, miner capitulation, and no new inflows amplifying selling.#MarketSentimentToday #WhoIsNextFedChair #USIranStandoff
