Crypto Market News Today, January 29: No Fed Rate Cut, US Shutdown Odds Falling, ETH USD Back Below $3K

Core Insights - The Federal Reserve has decided to maintain the current interest rates in the range of 3.5%–3.75%, which has impacted the crypto market negatively, causing Ethereum (ETH) to fall below the $3,000 mark [1][2] - Chairman Jerome Powell indicated that while growth remains solid, inflation is persistent, and the Fed is not ready to cut rates, with two governors dissenting in favor of a rate cut [2] - The interplay of monetary policy, political developments, and crypto price movements is crucial, alongside the performance of precious metals [3] Market Reactions - Following the Fed's decision, gold prices surged to $5,555, marking a daily increase of 2.5%, which added approximately $1.75 trillion in market value, equivalent to the total value of Bitcoin [4] - Bitcoin typically lags behind gold in price movements, and the current lack of a Fed rate cut is exerting pressure on risk assets while reinforcing Bitcoin's narrative as an inflation hedge [4] Political Context - The probability of a US government shutdown has decreased, with negotiations between the White House and Democrats showing progress, leading to improved sentiment [5] - A full government shutdown could disrupt 78% of federal spending, affecting various sectors and potentially draining liquidity from the crypto market [6] - The odds of a shutdown have dropped from 80% to under 50%, indicating a calmer political environment [6] Crypto Market Status - Ethereum's decline below $3,000 represents a 1.3% drop, with open interest remaining at $39 billion and liquidations being contained, suggesting a low-volume trading week [6]