bitcoin remains under pressure as the strong dollar and rising commodities steal the spotlight from the cryptocurrency market.
The flagship 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 again towards $2,950, while solana XRP and posted deeper intraday losses of between 2% and 4%. The pullback came alongside a firmer dollar and fading momentum in broader risk markets, with cryptocurrencies continuing to lag commodities and stocks.
Commodities remained the dominant trade. Gold remained near record levels after topping $5,500 an ounce earlier this week, while silver and copper remained elevated following strong rallies. The metals’ strength has been driven by previous dollar weakness, geopolitical risk and demand for assets considered stores of value amid uncertainty over government finances.
The dollar index on Wednesday posted its biggest daily gain since November, after US Treasury Secretary Scott Bessent said the administration continues to support a strong dollar policy, countering speculation that Washington was comfortable with a prolonged decline.
The move followed the Federal Reserve’s decision to leave rates unchanged after three cuts late last year, and policymakers have signaled they want clearer evidence that inflation is cooling before moving again.
While the result was widely expected, the stable policy message helped calm currency markets after days of volatility linked to fiscal concerns and political pressure on the central bank.
That backdrop has left cryptocurrencies on the sidelines. Bitcoin, often presented as a hedge against currency devaluation, has failed to keep pace with gold’s rise and is trading about 30% below its October high, even as metals and global stocks hover near all-time highs.
Traders say bitcoin continues to behave more like a high-beta risk asset than a macro hedge, reacting to dollar swings and broader liquidity conditions rather than developing an independent narrative.
“Coupled with an 8% weakening of the dollar from April to June last year, Bitcoin rose more than 50%,” Alex Kuptsikevich, chief market analyst at FxPro, said in an email. “Without delving too deeply into the story, it’s easy to see that the 4% drop in the dollar index in less than two weeks was met with a 30% rise in silver and a 15% rise in gold.”
“Bitcoin continues to try to consolidate above $89,000. This resistance level, which is approaching 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 has managed to successfully defend support near $85,000. Still, fluctuations around a third below the highs of the last two months are cause for concern. pessimism,” he added.
Last week reinforced that pattern, with cryptocurrencies lagging during the metals rally and failing to respond significantly to the dollar’s earlier weakness.
With the Fed’s decision behind markets, attention now turns to mega-cap tech gains and whether moves in stocks, bonds or currencies create new volatility across assets.
Until then, Bitcoin appears stuck in consolidation mode, holding key levels but lacking the momentum to rejoin the trades that dominate global markets.
