Bitcoin in Limbo as Markets Await Fed 

Bitcoin started the week on a softer footing, slipping around 0.6% to ~US$87,476 on Monday after a volatile weekend that briefly pushed price down toward the US$86,000 region. Traders remain focused on whether that mid $80k zone holds, with liquidity and positioning still doing a lot of the driving.

What moved markets?

1) Fed week = macro in the driver’s seat
With the U.S. Federal Reserve meeting approaching, risk appetite has been patchy. In the broader “risk-off” backdrop, safe haven demand has been noticeable, including renewed attention on gold, and crypto has been trading more like a macro sensitive asset than a standalone story.

2) Crypto equities stayed soft
US listed crypto linked stocks were weaker in early trading, matching the tone in spot BTC. Coinbase was down around 1.7%, with miners also under pressure.

3) ETF flow headwinds still matter
Spot bitcoin ETFs have been a key near-term sentiment gauge. After five straight days of outflows totalling ~US$1.7b last week (per Bloomberg-compiled data referenced in the source), traders are watching closely for signs that selling is easing because sustained outflows can keep a lid on rallies even when headlines look supportive.

4) Strategy buys more Bitcoin

One of the week’s more constructive datapoints came from Strategy, which disclosed additional purchases via an SEC filing:

• 2,932 BTC bought between Jan 20-25
• Total spend: US$264.1m
• Average price: US$90,061
• Reported holdings: 712,647 BTC
• Funding source: an at-the-market (ATM) share sale program (selling stock into the market over time)

That kind of steady corporate treasury accumulation can help on the margin but it hasn’t, by itself, been enough to flip broader market mood when ETF flows and macro volatility are leaning the other way.

Recent turbulence has also come with a familiar catalyst: forced liquidations. More than US$1b in leveraged crypto positions were reportedly liquidated during the latest move. When leveraged bets get closed out quickly, downside moves can turn sharp, even if the initial trigger is modest.

If Bitcoin breaks convincingly below the mid US$80,000s, traders will be alert to another liquidation wave and the possibility of renewed ETF selling.

For a cleaner rebound, markets will likely want to see:

• ETF outflows slow or turn to inflows, and
• stronger spot demand (not just corporate balance sheet buying).

The immediate macro focus remains the Fed decision and Chair Powell’s comments later this week, alongside daily spot bitcoin ETF flow data as a read on institutional risk appetite.