Crypto markets stabilized after an early-week pullback, but bitcoin continued to lag gold and silver as macro-driven trades dominated following the Federal Reserve’s decision to keep policy unchanged.
Bitcoin remained under pressure as a stronger U.S. dollar and rising commodities drew attention away from digital assets. The largest cryptocurrency slipped below $88,500 on Thursday after briefly trading above $89,000 earlier in the session, extending a volatile and directionless week.
Ether eased back toward $2,950, while solana, XRP and dogecoin posted sharper intraday losses of 2% to 4%. The move coincided with a firmer dollar and softer risk sentiment across markets, leaving crypto trailing gains in commodities and equities.
Commodities continued to set the tone. Gold hovered near record highs after briefly topping $5,500 an ounce earlier in the week, while silver and copper remained elevated following recent rallies. Strength in metals has been underpinned by earlier dollar weakness, geopolitical risks and demand for assets viewed as stores of value amid concerns over government finances.
The dollar rebounded sharply on Wednesday, with the dollar index recording its largest one-day gain since November. The move followed comments from U.S. Treasury Secretary Scott Bessent reaffirming the administration’s commitment to a strong-dollar policy, countering speculation that policymakers were comfortable with sustained currency weakness.
That rebound came alongside the Federal Reserve’s decision to hold interest rates steady after delivering three cuts late last year. Policymakers signaled they want clearer evidence that inflation is cooling before easing further.
While the Fed’s decision was widely expected, its steady-policy message helped calm currency markets after days of volatility driven by fiscal concerns and political pressure on the central bank.
Against that backdrop, crypto assets have remained sidelined. Bitcoin, often pitched as a hedge against currency debasement, has failed to match gold’s advance and is now trading about 30% below its October peak, even as metals and global equities sit near record levels.
Market participants say bitcoin continues to trade more like a high-beta risk asset than a macro hedge, responding primarily to moves in the dollar and global liquidity rather than developing a distinct narrative.
“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. “More recently, a 4% drop in the dollar index in less than two weeks coincided with a 30% jump in silver and a 15% rise in gold.”
Kuptsikevich added that bitcoin’s technical picture remains fragile. “Bitcoin is attempting to consolidate above $89,000, a key resistance level reinforced by the 50-day moving average,” he said. “Its position relative to this trend suggests a bearish market. While support near $85,000 has held, trading roughly a third below the highs of the past two months is a negative signal.”
Recent price action has reinforced that pattern, with crypto underperforming during the metals rally and showing little response to earlier dollar weakness.
With the Fed decision now behind markets, attention is shifting to upcoming megacap technology earnings and whether movements in equities, bonds or currencies spark fresh cross-asset volatility.
For now, bitcoin appears stuck in consolidation, holding key levels but lacking the momentum to re-enter the trades driving global markets.
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