Bitcoin hovered around $89,000 on Wednesday, as broader markets rose and the US dollar remained under pressure ahead of a Federal Reserve decision to be closely watched later in the day.
The largest cryptocurrency was trading around $88,800 during Asian time, a modest rise on the day after a choppy start to the week. Ether rose about 2% to just under $3,000, while most major tokens posted small gains, according to data from CoinGecko. The moves were measured rather than directional, reflecting a market awaiting clearer signals.
The calmer tone in cryptocurrencies reflected a more stable context elsewhere. Global stocks extended their gains, with Asian shares hitting record highs and US index futures pointing higher after the S&P 500 closed at a new high on Tuesday. Technology stocks led, helped by optimism around artificial intelligence spending and a slew of mega-cap earnings due this week.
The dollar steadied after falling to its weakest level since early 2022 earlier in the week, as investors weighed signs from the Trump administration that it is less worried about a weaker dollar. The weaker dollar has fueled strong rallies in gold and silver, but cryptocurrencies have so far lagged that trade.
“The dollar index fell to around 95.5, its weakest level in nearly four years, reducing the opportunity cost of holding risky assets and supporting BTC’s rally from below $88,000 to around $89,300,” market analysts at cryptocurrency exchange CoinSwitch said in an email. “Downward pressure eased after BTC traded and held the $86,000 to $87,000 zone, where a dense group of leveraged long liquidations likely triggered, reducing excess leverage and stabilizing the short-term market structure.”
Traders are watching whether a pause from the Federal Reserve (which markets are largely expecting) bolsters the recent supply of risk assets, or whether the guidance around inflation and rates prompts another reset.
At the same time, the gains from the so-called Magnificent Seven are expected to test confidence in the stock rally that has shifted capital away from cryptocurrencies in recent months.
For now, bitcoin appears stuck in a tight range, holding firm rather than chasing the broader risk move. That suggests stabilization, not momentum, as markets head into a dense run of macroeconomic events.
