Bitcoin remains under pressure as the strong dollar and rising commodities take the spotlight away from the crypto market.
The premier token fell below $88,500 on Thursday after briefly trading above $89,000 earlier in the session, extending a choppy week of price action. Ether fell back towards $2,950, while solana XRP And recorded larger intraday losses, down between 2% and 4%. The pullback was accompanied by a strengthening dollar and a slowdown in broader risk markets, with crypto continuing to lag commodities and stocks.
Commodities remained the dominant trade. Gold held at near-record highs after surpassing $5,500 an ounce earlier this week, while silver and copper remained elevated after strong rebounds. Strength in metals was driven by earlier dollar weakness, geopolitical risk and demand for assets seen as stores of value amid uncertainty over public finances.
The dollar index recorded its biggest one-day gain since November on Wednesday after US Treasury Secretary Scott Bessent said the administration continued to support a strong dollar policy, fending off speculation that Washington would settle for a prolonged decline.
The move follows the Federal Reserve’s decision to leave rates unchanged after three cuts late last year, with policymakers signaling they wanted clearer evidence that inflation is slowing before it picks up again.
Although the outcome was widely expected, the message of steady policy helped calm currency markets after days of volatility linked to fiscal concerns and political pressure on the central bank.
This context has left cryptography on the sidelines. Bitcoin, often touted as a hedge against currency depreciation, has failed to keep pace with gold’s rise and is trading about 30% below its October peak, even as metals and global stocks hover near their all-time highs.
Traders say Bitcoin continues to behave more like a high-beta risk asset than a macro hedge, reacting to dollar fluctuations and broader liquidity conditions rather than developing an independent narrative.
“Along with an 8% weakening of the dollar between April and June of last year, Bitcoin rose by more than 50%,” said Alex Kuptsikevich, chief market analyst at FxPro, in an email. “Without delving deeper into the story, it is easy to see that the 4% drop in the dollar index in less than two weeks was accompanied by a 30% jump for silver and 15% for gold.”
“Bitcoin continues to attempt to consolidate above $89,000. This resistance level, close to a round number, is reinforced by the 50-day moving average. BTC’s position relative to this curve indicates a bear market. Due to a relatively favorable external environment, it managed to successfully defend support near $85,000. Nevertheless, fluctuations of around a third below the highs of the last two months are a source of pessimism,” he added.
Last week reinforced this trend, with crypto lagging during the metals rally and failing to respond meaningfully to the dollar’s earlier weakness.
While the Fed’s decision supports markets, attention now turns to the results of tech mega-caps and whether movements in stocks, bonds or currencies are generating new volatility across assets.
Until then, Bitcoin appears stuck in consolidation mode, holding key levels but lacking the momentum needed to join the trades dominating global markets.
