Bitcoin sees minor dip, TrumpCoin slips 6% as crypto markets digest Fed decision

Bitcoin (BTC) saw a slight decline on Wednesday, January 29, trading at approximately $102,373, down 0.05% from the previous close. The day’s trading range saw a high of $103,044 and a low of $100,190.

In the cryptocurrency market, the $TRUMP token, a meme-inspired cryptocurrency officially introduced by President Donald Trump on January 17, 2025, has garnered significant attention. As of Wednesday, the token’s price is $0.845938, reflecting a 6.12% decrease from the previous close. The day’s trading range saw a high of $0.908844 and a low of $0.833769.

The Federal Reserve paused on Wednesday, its first following three consecutive cuts at the end of 2024. The decision to hold interest rates comes as policymakers remain cautious about the direction of inflation and the potential effect of economic policies expected from the new Trump administration.

President Trump has expressed a desire for lower interest rates, stating last week in Davos, Switzerland, that he plans to work on reducing energy prices and then “demand” that the Fed lower borrowing costs. When asked by reporters if he thought the Fed would respond to his requests, he answered positively. Traditionally, presidents have avoided publicly pressuring the Fed to uphold its political independence.

Additionally, the crypto markets remain uncertain over President Trump’s crypto plans. Last week he signed an executive order creating a working group to consider Bitcoin stockpiles and develop separate regulatory mechanisms. The order restricts the creation of central bank digital currency (CBDC) and instructs the group to look at stablecoin regulations. However, it did not mention Bitcoin, which has fueled speculation as to what the administration’s approach to the top cryptocurrency may be.

Concerns over President Trump’s plans for trade tariffs have also weighed on risk appetite, as the White House indicated that a February 1 deadline for tariffs against China, Canada, and Mexico remains on the table. Market participants are in a “wait and see” mode ahead of the Fed’s key decision on interest rates and financial policy.