Bitcoin remains around the $97,000 mark as Fed member Goolsbee shares insights amidst recent developments. His remarks carry significant weight following the latest data, marking a critical moment for market observers. The economic calendar for the day is also under review. What’s the current state of the cryptocurrency market?
Fed Announcements
Last week’s employment figures exceeded expectations, with inflation staying within anticipated boundaries this week despite a surprising turn in the Producer Price Index. Market projection for rate cuts remains bleak for the first quarter. Expectations for the January 28 interest rate meeting lean towards maintaining stable rates. Fed member Goolsbee made notable statements in his recent address:
“The low unemployment claims didn’t come as a surprise to me. Data show stability in the labor market. Employment remains strong, and general growth is positive.
The most crucial task for the Fed is to return inflation to 2%. Interest rates can still drop significantly, but clear evidence of inflation declining is necessary. Service inflation hasn’t been controlled yet.”
In summary, Fed hawks appear increasingly distant from rate cuts, driven by recent employment data. Without nearing a 2% inflation rate, the Fed members are likely to reiterate their goal, possibly delaying rate cuts until the first half of 2026. Previous year’s rate cuts materialized after alarming employment figures indicated excessive weakening, a scenario absent in today’s conditions.
Markets and Crypto
Today saw Starknet (STRK) unlocking (4.83% of supply), SEI unlocking (1.05% of supply), and the BitMine Investor Meeting (the largest ETH reserve company). Initial jobless claims came in lower than expected at 1.884 million against a forecast of 1.897 million, aiding Fed hawks like Goolsbee.
Examining broader markets, Taiwan Semiconductor Manufacturing Co. announced a capital expenditure plan of $56 billion for 2026, mitigating concerns over an AI bubble. In another development, Iran defused geopolitical tensions by pledging not to execute protesters, appeasing the U.S. This development is favorable for cryptocurrencies, marking a secondary topic of interest.
As of writing, Bostic from the Fed was speaking at a Metro Atlanta Chamber board meeting. He mentioned labor markets being neither too tight nor too loose and advocated for keeping monetary policy tight due to high inflation (target is 2%).
From the Fed, Barr will address stablecoins at the Future of Finance Forum at Wharton School at 17:15. His comments on cryptocurrencies hold significance.
Fed’s Barkin speaks at 20:40 at the Virginia Bankers Association’s 2026 Financial Forecasts meeting. Fed member Schmid, opposed to rate cuts, will share his outlook on the economic view and monetary policy at the Kansas City Economic Club, speaking at 21:30.
BTC is hovering around $97,000, with a significant rise expected once it breaks past $98,000.