Bitcoin hovered near $89,000 on Wednesday as broader markets pushed higher and the U.S. dollar remained under pressure ahead of a closely watched Federal Reserve decision later in the day.
The largest cryptocurrency was trading around $88,800 during Asian opening hours, up slightly a day after a choppy start to the week. Ether rose about 2% to just under $3,000, while most major tokens saw slight gains, according to CoinGecko data. The movements were measured rather than directional, reflecting a market awaiting clearer signals.
The calmer tone in crypto reflects a more stable backdrop elsewhere. Global stocks extended their gains, with Asian stocks hitting record highs and U.S. index futures pointing higher after the S&P 500 closed at a new high on Tuesday. Tech stocks led, helped by optimism around artificial intelligence spending and a big round of mega-cap earnings expected this week.
The dollar stabilized after sliding to its lowest level since the start of 2022 earlier in the week, as investors heeded signals from the Trump administration that it is less concerned about a weaker greenback. Dollar weakness has fueled a strong rally in gold and silver, but crypto has lagged this trade so far.
“The dollar index fell to around 95.5, its weakest level in almost four years, reducing the opportunity cost of holding risky assets and supporting BTC’s rebound from below $88,000 to around $89.3k,” market analysts at cryptocurrency exchange CoinSwitch said in an email. “The downside pressure eased after BTC traded and held the $86,000-$87,000 zone, where a dense cluster of leveraged long liquidations was likely triggered, reducing excess leverage and stabilizing the market structure in the near term.”
Traders are looking to see whether a Fed pause – which markets are widely expecting – reinforces the recent supply of risky assets, or whether guidance on inflation and rates leads to another reset.
At the same time, earnings from the so-called Magnificent Seven are expected to test confidence in the stock market rally that has driven capital away from crypto in recent months.
For now, bitcoin appears stuck in a narrow range, holding ground rather than continuing the broader risk-on move. This suggests stabilization, not momentum, as markets head into a dense series of macroeconomic events.
