By Alex Kozul-Wright
The price of Bitcoin edged higher Tuesday, as investors look for clues about market sentiment from the Federal Reserve's policy meeting today and tomorrow.
The world's largest cryptocurrency was trading at $87,978.7 Monday, up 0.2% from the previous session.
Elsewhere, Ethereum was up by 0.6%, while popular alt-coin XRP was treading water.
This week's subdued price action came as gold and silver both soared on consecutive-day record highs, underscoring precious metals' appeal as traditional haven assets.
But digital asset traders look set to switch their focus to the Federal Reserve's two-day meeting, which begins later today and ends on Wednesday.
Market watchers expect the FOMC meeting to conclude with policymakers holding interest rates steady, at 3.5%-3.75%.
Crypto traders will be listening carefully to Fed Chair Jerome Powell's tone for clues about broader risk sentiment and liquidity conditions.
If, as the CME Group's FedWatch gauge anticipates, monetary policy remains fixed over the next few months that will likely lead to near-term losses for cryptocurrencies because the incentive to take risks on volatile digital tokens decreases and safer yield-bearing assets become more attractive.
Write to Alex Kozul-Wright at alexander.kozul-wright@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
January 27, 2026 06:29 ET (11:29 GMT)
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