Fed Holds Rates Steady; HYPE and JUP Lead Crypto Gainers

I. Crypto Market Overview

Key Takeaways

Macro Environment

The Federal Reserve held rates steady at 3.5%-3.75%, emphasizing a data-dependent approach and labor market focus. The SEC clarified tokenized securities rules, increasing scrutiny on third-party models and DeFi compliance. The White House is set to meet industry leaders on the CLARITY Act, potentially shaping future US digital asset regulation.

Crypto Market

The crypto market saw mild declines over the past 12 hours, with BTC down 0.38% to $88,934 and ETH down 0.43% to $2,998. Most altcoins followed, though Hyperliquid (HYPE) rose 5.65%, Jupiter Project (JUP) gained 13.20%, and FET advanced 1.54%, driven by exchange listings and sector rotation. PIPPIN (PIPPIN) dropped 15.79%.

Today's Outlook

Today, the FOMC will release its policy update at 2:00 p.m. ET, followed by Fed Chair Powell's press conference at 2:30 p.m. ET. Markets widely expect rates to remain unchanged, making Fed commentary the key driver for volatility and sentiment shifts in both crypto and traditional assets.

Fear and Greed Index

40.00% Annual Percentile

37 Neutral

Total Crypto Market Cap

$3.01T

0.41%

Total Market Trading Volume

$104.79B

9.94%

Altcoin Season Index

0.00%

Quarterly Percentile

25 / 100

Total Futures Market Open Interest

3.71B

0.66%

Futures

630.41B

1.93%

Perpetuals

II. Industry Updates

Macro-economic Policies

The Federal Reserve held interest rates steady at 3.5%-3.75%, signaling a data-dependent approach for future cuts. This pause supports BTC and DeFi market stability by reducing immediate rate volatility risk.

Fed Chair Powell stated that any future rate cuts will be guided by labor market data, highlighting the importance of employment figures for crypto market sentiment and potential liquidity shifts in digital assets.

The US Treasury confirmed it will not support intervention in the yen, reinforcing a market-driven FX policy. This stance may increase currency volatility, impacting BTC/USD and JPY-based crypto trading pairs.

Gold prices surged 28% amid persistent inflation, but Powell downplayed its policy significance, indicating the Fed remains focused on broader economic indicators. This reassures crypto investors that monetary policy will not react to commodity price spikes alone.

The Federal Reserve emphasized its independence from political influence, aiming to maintain credibility and stable policy. This reduces uncertainty for crypto markets, supporting long-term investor confidence in USD-denominated digital assets.

Cryptocurrency Regulatory Trends

The SEC has clarified tokenized securities regulations, distinguishing issuer-sponsored from third-party models, which may face stricter oversight and impact DeFi and tokenization projects' compliance strategies.

The SEC warns that third-party tokenized securities, including synthetic and custodial types, may introduce additional counterparty and bankruptcy risks, potentially increasing regulatory scrutiny and affecting investor confidence.

The White House will meet with banking and crypto industry leaders to resolve disputes over the CLARITY Act, focusing on stablecoin yield provisions; the outcome could shape the U.S. digital asset regulatory landscape.

Crypto industry PAC Fairshake has raised $193 million for the 2026 U.S. midterms, aiming to support pro-crypto candidates and influence future regulatory policy, which may boost market optimism and legislative momentum.

PIPPIN (PIPPIN): PIPPIN surged 46.5% in 24h, driven by new listings on Bitunix and Trust Wallet, with trading volume up 269% to $131M and trending on major dashboards.

Hyperliquid (HYPE): HYPE rose 22.3% in 24h, boosted by a major Kraken exchange listing and $907M trading volume, as well as increased institutional deposits and market activity.

Jupiter Project (JUP): JUP gained 12.9% in 24h, reaching $0.000657, with price momentum but no major news or events reported as the main driver for the current rally.

Smart Money Movements

BlackRock deposited 1,156.87 BTC ($103.87M) and 19,644 ETH ($59.23M) into Coinbase, signaling increased institutional crypto activity.

ANAP Lightning Capital acquired 70.45 BTC for approximately $6.55M on January 21, raising its total Bitcoin holdings to 1,417.03 BTC.

DDC Enterprise Limited purchased an additional 100 BTC, bringing its total Bitcoin reserves to 1,683 BTC, with an average holding cost of $88,130 per coin.

KBC Group increased its stake in MicroStrategy by adding 88,501 shares, raising its total holdings to 311,624 shares valued at $50.44M.

A whale transferred 832 BTC worth $74.5M to Coinbase Institutional, highlighting ongoing large-scale crypto asset movements into institutional platforms.

Events to Watch

Jan 29 (Thu)

FOMC will release its policy update at 2:00 p.m. ET; Fed Chair Powell holds a press conference at 2:30 p.m. ET, with rates expected to remain unchanged.

Jan 30 (Fri)

Eurozone releases January CPI and Q4 2025 GDP data; Infinex (INX) Token Generation Event in DeFi DEX Multichain Trading Yield Aggregator.

Jan 31 (Sat)

US January Employment Data and Q4 2025 Employment Cost Index will be released, providing key labor market signals for Fed policy.

Feb 2 (Mon)

Echelon Market (ELON), Zama (ZAMA) Token Generation Events; US ISM Manufacturing PMI data release, a key US economic indicator.

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