Bitcoin Battles $100k Ahead of Key FOMC Decision

Bitcoin is currently grappling to hold above the crucial $100k level as the market braces for tomorrow’s Federal Open Market Committee (FOMC) decision. While BTC consolidates around this psychological threshold, altcoins have fared worse, retracing significantly. Ethereum (ETH) and Solana (SOL) are down by 3.5%, with most other projects declining by over 5%. However, two notable exceptions are XRP and ONDO, both of which have remained resilient amidst the broader market sell-off.

This resilience follows the announcement of a partnership between Ondo Finance and Ripple.

Ripple x Ondo Finance Partnership Sparks Interest

Ondo Finance—a previous Stormrake Spotlight and a standout project in real-world asset tokenisation—has teamed up with Ripple to launch tokenised US Treasuries on the XRP Ledger. This collaboration underscores Ondo’s ambition to bridge traditional finance with blockchain and highlights Ripple’s ongoing efforts to expand its use cases.

Both XRP and ONDO benefit from strong institutional and community support. XRP continues to draw attention due to its potential links with US government entities, while ONDO is backed by BlackRock, the world’s largest asset manager. This partnership has contributed to their relative outperformance against a bearish market backdrop.

Market Eyes Jerome Powell’s Speech

With less than 20 hours until Jerome Powell takes the stage to discuss the FOMC’s latest interest rate decision, market participants are bracing for heightened volatility. While there’s a 97.9% probability of no rate change, traders are eager to parse Powell’s tone.

Since the last hawkish presser in mid-December, economic data has sent mixed signals. While job numbers have been weak, core CPI figures suggest a slowing in inflation. Whether Powell maintains a hawkish stance or adopts a more dovish tone remains to be seen, but the next 24 hours promise to be pivotal.

Stormrake Spotlight: Ethereum (ETH) ($3,085)

Ethereum continues its downward trend but is finding support within a critical accumulation zone. Over the past two days, ETH has repeatedly bounced from the zone’s lower boundary. If Ethereum can establish a base here, it could signal a bottoming pattern, potentially setting the stage for a run toward higher targets in the coming weeks.

BTC/USD Key Levels and Price Action:

Bitcoin has failed to reclaim the $104k level, failing to break above key moving averages. Consequently, BTC has retreated and is now fighting to stay above $100k. This level is crucial; if BTC holds and forms a higher low, it could create bullish divergence, offering some hope for a market rebound.

BTC Total ETF Flows for 28 Jan: $ -11.7 million

ETH/USD Key Levels and Price Action:

Ethereum mirrors Bitcoin’s struggle, having failed to flip $3,207 into support while also being rejected by the 21 and 55 EMAs. ETH is now hovering near $3,000, a key level that could provide much-needed support. Should ETH hold and build momentum here, it may make another attempt to reclaim the moving averages and retest $3,207.

ETH Total ETF Flows for 28 Jan: $ (data not available)

*All prices are denominated in USD unless stated otherwise*

Written by Alexandar Artis

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