bitcoin traded below the $88,500 level in early-week trading, as crypto markets softened and headed into a crucial stretch for global risk assets, marked by the Federal Reserve’s policy decision and a slew of Big Tech gains.
The largest cryptocurrency was trading around $88,400 during Asian time, down modestly on the day and down about 4% over the past week, according to data from CoinDesk. Ether was around $2,940, while solana XRP and It also recorded small declines, extending a cautious tone to major tokens.
Silver (XAU) retreated from the day’s extremes in late US trading after posting its steepest jump since 2008, while gold (XAU) fell from all-time highs after briefly topping $5,000 an ounce as choppy price action shook the metals rally.
Still, the white metal ended Monday up 0.6%, even after a more than 14% intraday surge that briefly took it to a record above $117 an ounce, its biggest one-day swing since the global financial crisis.
Cryptocurrencies, on the other hand, have struggled to participate in broader macroeconomic trading. Bitcoin remains well below its October peak, even as falling real yields, a weaker dollar and rising geopolitical uncertainty have driven gains in stocks and precious metals.
The divergence has reinforced the view that cryptocurrencies are currently trading less as a hedge and more as a high-beta asset sensitive to positioning and liquidity.
“Cryptocurrencies remain a lagging risk-sensitive asset class, below metals and stronger global currencies,” Alex Kuptsikevich, chief market analyst at FxPro, said in an email.
“The bearish technical outlook remains relevant, despite the gains of the last few hours. BTC remains below its key 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 earnings from several Magnificent Seven companies will test whether the AI-fueled rally in stocks can extend. Both events are seen as potential catalysts for broader changes in risk appetite, which may impact crypto markets.
Whether cryptocurrencies can regain momentum may depend less on specific cryptocurrency news and more on how markets respond to messages from the Federal Reserve and results from Big Tech. Until then, bitcoin appears stuck near current levels, falling as investors wait for clearer direction.
