Crypto markets steadied after an early-week dip, but bitcoin continued to lag gold and silver as macro-driven trades dominated following the Federal Reserve’s decision to keep interest rates unchanged.
Bitcoin slipped below $88,500 on Thursday after briefly trading above $89,000, extending a week of choppy, sideways action. Ether fell toward $2,950, while solana, XRP and dogecoin declined 2%–4%. The losses came as the dollar strengthened and risk sentiment softened, leaving crypto underperforming both commodities and equities.
Commodities remained the market focus. Gold hovered near record highs after briefly topping $5,500 an ounce, while silver and copper stayed elevated following strong rallies. Metals have benefited from earlier dollar weakness, geopolitical tensions, and demand for assets seen as safe havens amid concerns over government finances.
The dollar rebounded sharply on Wednesday, posting its largest one-day gain since November after U.S. Treasury Secretary Scott Bessent reaffirmed support for a strong-dollar policy, countering speculation of tolerance for a prolonged decline. The Fed’s decision to hold rates steady after three cuts late last year reinforced that stance, with policymakers signaling they want clearer evidence that inflation is cooling before easing again.
Bitcoin has struggled to keep pace. Often promoted as a hedge against currency debasement, the cryptocurrency now trades roughly 30% below its October peak even as metals and equities approach record highs. Traders say it continues to behave more like a high-beta risk asset than a macro hedge, reacting to dollar swings and liquidity conditions rather than following an independent trend.
“Along with an 8% weakening of the dollar from April to June last year, bitcoin rose by more than 50%,” said Alex Kuptsikevich, chief market analyst at FxPro. “Recently, a 4% drop in the dollar index in under two weeks coincided with a 30% jump in silver and a 15% rise in gold.”
Kuptsikevich noted bitcoin’s technical outlook remains fragile. “BTC is attempting to consolidate above $89,000, a key resistance reinforced by the 50-day moving average. While support near $85,000 has held, trading roughly a third below recent highs points to caution.”
With the Fed decision behind markets, attention is shifting to upcoming megacap tech earnings and potential cross-asset volatility in equities, bonds, and currencies. For now, bitcoin remains in consolidation, holding key levels but lacking the momentum to rejoin trades driving global markets.
