Leading Cryptocurrencies Rally Ahead of Fed Rate Decision

Bitcoin, Ethereum, and Dogecoin see gains as investors prepare for the Federal Reserve's policy announcement.

Jan. 27, 2026 at 9:23pm

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Major cryptocurrencies like Bitcoin, Ethereum, and Dogecoin saw price increases on Tuesday, mirroring the broader rally in stocks and precious metals. The crypto market capitalization climbed back above $3 trillion as investors await the Federal Reserve's policy decision on interest rates.

Why it matters

The cryptocurrency market's performance is closely tied to broader economic conditions and investor sentiment. The rally ahead of the Fed's rate announcement suggests that traders are anticipating a favorable outcome, such as a rate cut or pause in hikes. Ethereum's strong performance relative to Bitcoin also indicates a potential shift in investor preferences.

The details

Bitcoin rose nearly 1% to over $89,000, while Ethereum gained 2.8% to break above $3,000. Other major cryptocurrencies like Dogecoin and Solana also saw gains of around 2%. The rally was accompanied by a surge in open interest in Bitcoin's derivatives market, though the overall market sentiment remained in 'Fear' territory according to the Crypto Fear & Greed Index. Shares of crypto-related companies like MicroStrategy and Bitmine Immersion Technologies also closed higher.

  • The cryptocurrency price data was recorded at 8:30 p.m. ET on Tuesday, January 28, 2026.

The players

Arthur Azizov

Founder and investor of B2 Ventures, who provided analysis on Bitcoin's price outlook.

Michael van de Poppe

A well-known cryptocurrency trader and analyst, who commented on Ethereum's performance relative to Bitcoin.

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What they’re saying

“At that point, my base case is consolidation. I expect BTC to hold the $85,000–$88,000 zone. This area already worked as strong support several times in Nov-Dec 2025, and I doubt it breaks easily this time.”

— Arthur Azizov, Founder and investor of B2 Ventures (Benzinga)

“That's a strong signal, and I think that there's more to come as it's holding a crucial level of support.”

— Michael van de Poppe, Cryptocurrency trader and analyst (Benzinga)

What’s next

Investors will closely monitor the Federal Reserve's policy decision on Wednesday, which is expected to result in interest rates holding steady at 3.5%-3.75%.

The takeaway

The cryptocurrency market's rally ahead of the Fed's rate announcement suggests that traders are anticipating a favorable outcome, with Ethereum's outperformance against Bitcoin indicating a potential shift in investor preferences. However, the overall market sentiment remains cautious, highlighting the continued volatility and uncertainty in the crypto space.