Bitcoin traded below the $88,500 level early this week as crypto markets softened ahead of a pivotal period for global risk assets, marked by the Federal Reserve’s policy decision and a heavy earnings slate from big tech.
The largest cryptocurrency traded around $88,400 during Asian hours, down slightly on the day and down about 4% over the past week, according to CoinDesk data. Ether was hovering near $2,940, while solana XRP And also posted slight declines, extending a cautious tone across major tokens.
Silver (XAU) retreated from the day’s extremes in late US trading after posting its biggest rise since 2008, while gold (XAU) slipped from record highs after briefly surpassing $5,000 an ounce as volatile price action dented the metals’ rally.
The white metal still ended Monday up 0.6%, even after an intraday rise of more than 14% that briefly propelled it to a record above $117 an ounce – its biggest one-day rise since the global financial crisis.
Crypto, on the other hand, has struggled to participate in the broader macroeconomic market. Bitcoin remains well below its October high, although falling real yields, a weak dollar and rising geopolitical uncertainty have fueled gains in stocks and precious metals.
This divergence has reinforced the view that crypto currently trades less as a hedge and more as a high-beta asset sensitive to positioning and liquidity.
“Cryptocurrencies remain a lagging class of risk-sensitive assets, falling short of metals and the strongest global currencies,” Alex Kuptsikevich, FxPro chief market analyst, said in an email.
“The bearish technical picture remains relevant, despite the gains of the last few hours. BTC remains below its main moving average lines and has not attempted to break the support of the last two months,” he added.
The Federal Reserve is widely expected to hold interest rates steady at its policy meeting on Wednesday, while results from several Magnificent Seven companies are expected to test whether the AI-driven stock rally can be sustained. Both events are seen as potential catalysts for broader changes in risk appetite, which may weigh on crypto markets.
Whether crypto can regain momentum may depend less on crypto-specific news and more on how markets respond to Fed messaging and Big Tech results. Until then, bitcoin appears to be near current levels, and it is falling as investors wait for clearer direction.
