Bitcoin fell to its lowest level of the year on Thursday, pressured by a broader selloff on Wall Street led by weakness in software stocks, alongside a sharp reversal in gold prices after their recent surge.
Markets were also digesting the Federal Reserve’s decision on Wednesday to keep interest rates unchanged, reinforcing a cautious tone across risk assets.
The world’s largest cryptocurrency was last down 5.6% at $84,585.30 by 11:13 ET (16:13 GMT). Earlier in the session, bitcoin touched $84,372.30, marking its lowest price so far this year.
Bitcoin had spent most of the week trading in a narrow range between $86,000 and $89,000 and has posted gains of just 1% in January, highlighting a lack of strong upside momentum.
Gold reversal adds pressure to crypto
The decline in cryptocurrencies contrasted sharply with earlier moves in gold, which surged past $5,500 per ounce for the first time on Thursday. That rally was driven by safe-haven demand, rising geopolitical tensions, and expectations around the Fed’s policy outlook.
Gold prices later gave up much of those gains, however, as investors paused after an aggressive run higher. The reversal added to broader market volatility and weighed on sentiment toward alternative assets, including cryptocurrencies.
On Wednesday, the Federal Reserve held its benchmark interest rate steady in the 3.50%–3.75% range, following three consecutive rate cuts.
Fed Chair Jerome Powell said policymakers need more evidence that inflation is moving sustainably toward the 2% target before considering further easing. He pointed to a still-resilient labor market and steady economic growth.
Powell’s remarks reinforced expectations that any future rate cuts will be gradual and data-dependent, a stance that has dampened appetite for risk-sensitive assets as investors reassess liquidity conditions in the months ahead.
White House seeks progress on crypto legislation
According to a Reuters report, the White House plans to meet senior executives from major banks and cryptocurrency firms next week in an effort to break a stalemate over U.S. digital-asset legislation.
The discussions, led by the administration’s crypto council, will focus on disputed rules around whether crypto firms should be allowed to offer interest or reward payments on dollar-pegged stablecoins.
The talks highlight Donald Trump’s push to advance crypto legislation after months of disagreement between banks and digital-asset companies over competitive and financial stability risks.
The proposed bill, known as the Clarity Act, aims to establish a federal regulatory framework for digital assets. While crypto firms argue that yield offerings are essential to attracting users, banks warn they could accelerate deposit outflows. Those concerns have stalled progress in the Senate.
Altcoins remain under pressure
Altcoins also traded lower on Thursday, reflecting the broader risk-off mood across markets.
Ethereum fell 6.1% to $2,817.58, while XRP dropped 5.6% to $1.80. Solana and Cardano both slid nearly 7%.
Among meme tokens, Dogecoin declined 6.8%, while $TRUMP fell 3.2%, extending recent losses across speculative corners of the crypto market.
