Bitcoin (BTC) has officially breached the critical psychological support level of $90,000, trading near $87,500 on Thursday, January 29, 2026. This sharp decline marks a significant shift in market sentiment as investors flock to traditional safe-haven assets, pushing gold prices to an unprecedented all-time high of $5,521 per ounce—shattering the recent $5,100 milestone. The crypto market correction today comes on the heels of the Federal Reserve's decision yesterday to hold interest rates steady, a move that dampened hopes for immediate liquidity injections and triggered a capital flight from risk-on assets.

BTC Below $90,000 Support: A Technical Breakdown

The collapse below the $90,000 mark is not just a psychological blow but a technical breakdown that has been brewing since mid-November 2025. After failing to secure a breakout above $100,000 earlier this month, Bitcoin has been trapped in a consolidation pattern. The Bitcoin price drop 2026 accelerated yesterday after the Federal Open Market Committee (FOMC) meeting, where policymakers voted to maintain the benchmark federal funds rate at 3.50% to 3.75%.

Technical analysts point to a "liquidity vacuum" below the $90,000 support zone. "We are seeing a classic capitulation event," notes a senior analyst at CryptoRank. "With the $90,000 floor gone, the next major support levels are technically thin until the $82,000 to $84,000 range." This bearish structure is exacerbated by Spot Bitcoin ETFs, which have recorded notable outflows in January, contrasting sharply with the robust inflows seen in precious metals ETFs.

Gold Hits $5,521: The "Safe Haven" Flight Intensifies

While Bitcoin struggles, the Bitcoin vs Gold 2026 narrative has taken a decisive turn. Gold prices have staged a historic rally, surging past the $5,100 mark earlier this week and touching a new record of $5,521 on Thursday. This divergence highlights a growing "trust deficit" in financial markets, with institutional investors favoring the tangible stability of gold over the volatility of digital assets.

Data from Morningstar indicates that European-domiciled gold ETFs have attracted over €2 billion since the start of 2026. Diego Franzin, head of portfolio strategies at Plenisfer Investments, commented on the phenomenon: "Gold's record highs are not pricing imminent crisis, but a world of persistent instability and eroding monetary trust." For the first time in this cycle, Bitcoin is decoupling from gold's upward trajectory, behaving more like a risk asset vulnerable to macroeconomic tightening than a digital store of value.

Federal Reserve Crypto Impact: Powell's Hawkish Pause

The primary catalyst for the current crypto market correction today is the Federal Reserve's cautious stance. In a press conference following the January 28 meeting, Fed Chair Jerome Powell described the current rate environment as sitting within a "neutral range" and declined to commit to future rate cuts. "We’re not trying to articulate a test when to next cut," Powell stated, signaling that the central bank is in no rush to loosen policy despite the clamor from risk markets.

This "hawkish pause" has been interpreted by the crypto market as a signal that the era of easy money is not returning anytime soon. With the federal funds rate holding at 3.50%-3.75%, the opportunity cost of holding non-yielding assets like Bitcoin remains high relative to bonds, which have seen yields stabilize. The Federal Reserve crypto impact is clear: without the promise of cheaper capital, speculative fervor is cooling rapidly.

BTC Price Prediction January 2026 and Beyond

Looking ahead, the BTC price prediction January 2026 landscape is divided. Bearish forecasts suggest that if Bitcoin fails to reclaim $90,000 by the weekly close, the correction could deepen toward $75,000. "The technical picture for Bitcoin is bearish as it failed to breach $100,000 in January," warns a report from FXEmpire.

However, long-term bulls remain unfazed. Institutional analysts from firms like Fundstrat and JPMorgan still maintain 2026 targets ranging from $120,000 to $170,000, citing improved market maturity and the potential for a mid-year reversal if the Fed eventually pivots. For now, traders are advised to watch the $87,000 level closely; a break below could trigger the next leg of the sell-off.

Cryptocurrency News Live: Market Sentiment

The broader cryptocurrency market is mirroring Bitcoin's slump, with major altcoins posting double-digit losses over the last 48 hours. The "Fear and Greed Index" has shifted back into "Fear" territory, reflecting the anxiety over the Fed's reluctance to cut rates. Conversely, the gold-to-Bitcoin ratio has broken through key resistance levels, signaling a structural rotation of capital that could define the first quarter of 2026.

As the market digests Powell's comments and the reality of $5,500+ gold, Bitcoin faces a crucial test. Will it re-establish its narrative as "digital gold," or will it continue to lag behind its physical counterpart in this new macroeconomic environment? The coming days will be pivotal for the crypto market correction.