Bitcoin Reclaims $88,000 as QCP Sees Range-Bound Trade Ahead of FOMC and Funding Deadline

Bitcoin moved back above $88,000, a level where previous breaks triggered liquidation-driven selloffs before swift recoveries pulled prices into a trading range, QCP said in its January 28 market update. The options market is pricing controlled volatility with a positively sloped term structure, pointing to range-bound trading rather than a sharp selloff as the market faces the January 28 FOMC rate decision, the January 30 government funding deadline and renewed Senate discussions on crypto legislation, QCP noted. On fiscal risk, QCP said a timely stopgap could compress short-term risk premia and make crypto trade like pure beta, while a prolonged impasse could tighten liquidity and force broader de-risking. QCP expects the Fed to hold rates unchanged and stress its independence while inflation remains above 2%, warning that a hawkish hold could lift the dollar and spur moves in risk assets.