Bitcoin edged higher on Tuesday but remains below the $90,000 mark and is now hovering not far from a one-month low as traders remained cautious after Trump threatened a 25% rate hike on South Korea and ahead of the Federal Reserve’s policy meeting.
BTC price put on edge down a fraction of a percentage in the past 24 hours to trade at $88,269 as of 3:18 a.m. as it continues to struggle to regain notable momentum after last week’s sharp losses and underperforms against other assets.
The crypto market also saw a slight jump to a market cap of approximately $3.07 trillion.
Trade tensions rise as Trump hits South Korea with 25% tariffs
US President Donald Trump has announced that he will raise tariffs on South Korean imports to 25% after accusing the country of breaching a trade deal struck last year.
Under the October 2025 deal, Seoul pledged $350 billion in investments in strategic U.S. industries in exchange for tariffs capped at 15%.
However, the government noted that “it is unlikely” that investments could start in the first half of this year, citing administrative reasons and volatility in the currency market.
In a post on social media, Trump said he would increase tariffs on South Korean imports to 25% on several products including cars, lumber, pharmaceuticals and “any other reciprocal tariffs.”
Trump: I hereby increase South Korean tariffs on automobiles, lumber, pharmaceuticals and all other reciprocal tariffs from 15% to 25% – $QQQ $SPY pic.twitter.com/eMFvEjB1fk
— Hardik Shah (@AIStockSavvy) January 26, 2026
According to Trump, South Korean lawmakers have been slow to approve the deal, while the US has moved quickly to lower its tariffs in line with the agreed transaction.
After Trump threatened to impose 100% tariffs on Canada, and now South Korea, this weekend, traders remain cautious, driving safe havens like gold and silver to record highs.
Traders are watching the Federal Reserve’s decision
Adding to the market’s indecisiveness, the focus has shifted to the Federal Reserve’s two-day meeting, which begins today, January 27, and ends on January 28. Economists widely expect policymakers to keep interest rates unchanged on Wednesday.
Traders are closely watching the Fed’s statement and Chairman Jerome Powell’s news conference for clues on the timing of possible rate cuts and the central bank’s inflation outlook.
💥 BREAK
🇺🇸 THE FEDERAL RESERVE ANNOUNCES ITS INTEREST RATE DECISION THIS WEDNESDAY AT 2:00 PM ET
THE DOLLAR INDEX IS DOWN STRONGLY, AND ALL EYES ARE ON THE FED.
WILL THEY pull the trigger on a rate cut? 👀 pic.twitter.com/0sF2lOiPp2
— Mr. Crypto Whale 🐋 (@Mrcryptoxwhale) January 26, 2026
Any change in Powell’s tone could impact risk sentiment and liquidity conditions, both of which are key drivers of risky assets like Bitcoin.
With Bitcoin down 4.5% over the past two weeks, can Bitcoin recover above $90,000?
Bitcoin Price Analysis: BTC Remains Strong Above Support
Bitcoin is currently trading within a well-defined consolidation range, in a sideways pattern, with the asset near the $86,500-$89,000 support zone, following a sharp decline from the late 2025 highs.
This area matches a previous demand zone in December as BTC formed strong support. BTC price is now below the 50-day Simple Moving Average (SMA) ($90,025) and the 200-day SMA around $104,800, which continues to reflect the broader long-term upward trend.
After a strong rally earlier in 2025, Bitcoin set a series of higher highs before momentum stalled near its all-time high around $126,000. This rejection led to a sustained price correction to around $80,500.
Since that drop, BTC price action has shifted to a range-bound structure, with buyers repeatedly stepping near the $86,000 area, as evidenced by multiple negative rejections. This behavior indicates that underlying demand is still at play, even if upward attempts are still meeting resistance.
Any push towards the region between $93,000 and $95,000 was met with selling, confirming that this zone is an active supply area.
Momentum indicators reflect this cautious tone. The daily RSI is currently hovering around 42, below the neutral 50 level. This indicates reduced bullish momentum and a tendency towards seller control, although the RSI is not yet in deep oversold territory.
BTC Price Prediction: $90,000 in Sight
From a technical point of view, Bitcoin price is approaching a decision zone. Staying above the support region of $86,000-$88,000 would allow BTC price to stabilize and provide fresh impetus to the resistance zone of $93,000-$95,000.
A sustained daily close above the 50-day SMA would improve the bullish narrative and increase the likelihood of a rebound towards the $100,000-$104,000 area, near the 200-day SMA and previous breakout levels.
On the other hand, a confirmed break below the current support range around $86,000 would invalidate any bullish attempts. In this scenario, the next likely support zone and a buffer against the downside pressure could be the $84,475 level, which previously acted as a demand area.
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