MarketsBitcoin
|3 min ReadBitcoin Rebounds Above $110,500 as Traders Eye Rate Cuts
Maya Chen
Senior Analyst
Published
Jan 16, 2026
Market Regains Confidence After Volatile Week
Bitcoin climbed back above 110,544 after spending four days below the key level.
Ether jumped 3.6 percent to reclaim $4,036. BNB rose 3.91 percent, XRP added 3.54 percent, and Solana advanced 2.68 percent, signaling a renewed wave of optimism across digital assets.
“The recent rebound in Bitcoin has been driven by a combination of institutional inflows and improving macroeconomic conditions,” said Rachael Lucas, crypto analyst at BTC Markets. She noted that demand for spot crypto ETFs has returned, with institutions viewing last week’s dip as a buying opportunity.
The recovery follows turbulence triggered by U.S. President Donald Trump’s new China tariff measures and renewed anxiety over regional banks’ exposure to bad loans.
Traders Bet on a Fed Cut
Despite the lingering macro headwinds, investors are now pricing in a 25 basis point rate cut at the next Federal Reserve meeting. The CME FedWatch Tool shows a 98.9 percent probability of easing.
“Chair Jerome Powell acknowledged that while growth remains firmer than expected, labor market softness persists,” Lucas said. “This shift has eased bond yields and improved liquidity for risk assets, including digital assets.”
She added that upcoming U.S. inflation and manufacturing reports, along with Australian employment and retail data, could further shape expectations for global rates and risk appetite. “These factors will likely determine whether Bitcoin continues to consolidate or begins a new directional move,” she said.
Key Levels and Headline Risks
Kronos Research CIO Vincent Liu said the key technical zones remain 110,000 to $111,000 on the upside.
“A break below structural support around 111K could extend momentum and open the door for another leg higher.”
Lucas noted that Bitcoin is testing resistance between 115,500. A decisive move through $111,000 could unleash a short squeeze and accelerate upward momentum.
Still, she cautioned that geopolitical tension between the U.S. and China remains the main overhang. The planned Trump–Xi meeting at the end of the month, she said, carries “significant headline risk” that could unsettle sentiment again.
For now, traders are leaning bullish. Bitcoin has cleared the first hurdle at $110,000. Whether it holds depends on policy, politics, and the next macro surprise.
Disclaimer: This document is intended for informational and entertainment purposes only. The views expressed in this document are not, and should not be taken as, investment advice or recommendations. Recipients should do their own due diligence, taking into account their specific financial circumstances, investment objectives and risk tolerance, which are not considered here, before investing. This document is not an offer, or the solicitation of an offer, to buy or sell any of the assets mentioned.