The post Federal Reserve’s January Events Cause Market Fluctuations appeared on BitcoinEthereumNews.com. Key Points: Federal Reserve’s January events impact marketsThe post Federal Reserve’s January Events Cause Market Fluctuations appeared on BitcoinEthereumNews.com. Key Points: Federal Reserve’s January events impact markets

Federal Reserve’s January Events Cause Market Fluctuations

2 min read
Key Points:
  • Federal Reserve’s January events impact markets and precious metals.
  • Significant monetary policy developments this week.
  • Upcoming U.S. data releases might alter current trends.

Precious metals experienced a sharp decline this week following the FOMC meeting and confirmation of the Federal Reserve Chairman nomination, affecting market fund flows significantly.

Upcoming U.S. non-farm payroll data and Bank of Japan policy minutes may further influence market trends, with crypto sectors already witnessing heavy liquidations and price adjustments.

Federal Reserve Actions Lead to Market Volatility

The Federal Reserve’s leadership news and the FOMC meeting have had palpable effects on market sentiments. Following these developments, precious metals saw a dramatic drop, emphasizing the market’s sensitivity to strategic shifts in monetary policy.

Immediate implications involve adjusting market positions to accommodate the evident short-term fluctuations. Traders and investors are now anticipating the upcoming U.S. non-farm payroll data and other significant reports expected throughout February.

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Market reactions have been mixed, with some stakeholders expressing caution regarding further volatility. Vida, Founder of Formula News, stated in a recent article, “Bought $2 million worth of ETH at an average price of $2281, with another $20 million in reserve waiting to buy the dip.” This highlights the cautious approach being adopted by market participants as they navigate these uncertain times.

Did you know? The Federal Reserve’s actions often cause ripple effects globally, impacting everything from commodity pricing to foreign exchange rates. This historical pattern reinforces the importance of tracking macroeconomic trends closely in the cryptocurrency market.

Bitcoin (BTC) is experiencing downward pressure, reflecting broader market trends. As of February 1, 2026, Bitcoin’s price is $77,271.54, with a market cap of $1.54 trillion and a 24-hour trading volume of $72.70 billion, down by 4.70% over the past day according to CoinMarketCap.

Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 14:39 UTC on February 1, 2026. Source: CoinMarketCap

Insights from Coincu research team suggest that while the immediate reaction to the Federal Reserve’s maneuvers has been negative, historical precedent indicates potential recovery.

Source: https://coincu.com/markets/federal-reserve-january-market-effects/

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