Bitcoin climbed above the $89,000 mark on Wednesday but continued to trade within a narrow range, as investors weighed a weaker U.S. dollar and record-high gold prices against caution ahead of a key policy decision from the Federal Reserve later in the day.
The world’s largest cryptocurrency was last up 1.1% at $89,235.8 by 02:07 ET (07:07 GMT).
Bitcoin stays rangebound ahead of Fed decision
Bitcoin found support from broad dollar weakness after U.S. President Donald Trump downplayed concerns over the greenback’s recent slide.
The dollar hovered near four-year lows, while gold extended its powerful rally to fresh record highs above $5,200 an ounce. The move reinforced demand for alternative stores of value.
Despite these supportive factors, Bitcoin struggled to break out decisively. Prices remained confined to a tight $88,000–$89,000 range as traders stayed on the sidelines.
Market positioning remained light, with risk appetite constrained by uncertainty over the near-term outlook for U.S. interest rates and questions surrounding the central bank’s independence.
The Federal Reserve is widely expected to keep interest rates unchanged at the conclusion of its policy meeting later on Wednesday.
Investors will closely examine the accompanying statement and comments from Fed Chair Jerome Powell for clues on when rate cuts could begin. Inflation has shown signs of cooling, while economic growth remains relatively resilient.
Lower interest rates typically benefit non-yielding assets such as Bitcoin by reducing the opportunity cost of holding them.
Adding to uncertainty, traders are also monitoring developments around Trump’s expected nomination of a new Federal Reserve chair. Investors are assessing how increased political influence could affect future monetary policy and the Fed’s tolerance for inflation.
Crypto prices today: altcoins edge higher
Most major altcoins posted modest gains on Wednesday, broadly tracking Bitcoin’s move higher.
Ethereum rose 2.6% to $3,006.92, while XRP gained 1.1% to $1.92.
Solana edged slightly higher, and both Cardano and Polygon advanced around 1.5%.
Among meme-based tokens, Dogecoin climbed 2.5%.
