Bitcoin fell below the $89,000 mark on Wednesday as investors weighed a softer dollar and record gold prices against lingering caution ahead of a closely watched U.S. Federal Reserve policy decision later in the day.
The world’s largest cryptocurrency was last down 0.37 percent at $88,804 as of 9:04 GMT. Meanwhile, Ether fell 0.87 percent to $2,985.8.
Bitcoin struggles to achieve decisive breakout
Earlier in the session, Bitcoin drew support from broad-based dollar weakness after U.S. President Donald Trump downplayed concerns over the greenback’s decline.
The dollar lingered near four-year lows, while gold extended its rally to new record highs above $5,200 an ounce, bolstering demand for alternative stores of value.
Even so, Bitcoin struggled to achieve a decisive breakout, remaining confined to a narrow trading range of roughly $88,000 to $89,000.
Fed to keep rates unchanged
Traders now await clearer signals from the Fed, with risk appetite capped by uncertainty over the near-term trajectory of U.S. interest rates and questions surrounding the central bank’s independence. The Federal Reserve is widely expected to keep rates unchanged at the end of its policy meeting later on Wednesday.
Investors will watch the accompanying statement and Chair Jerome Powell’s comments for clues on the timing of potential rate cuts, especially as inflation shows signs of cooling while economic growth remains resilient.
Read: Bitcoin rises to $88,350 after nearing one-month low on rising uncertainty over Fed decision
Adding to the uncertainty, markets are also watching developments around Trump’s expected nomination of a new Federal Reserve chair, assessing how greater political influence could alter the Fed’s policy approach and tolerance for inflation.
Lower interest rates typically benefit non-yielding assets such as Bitcoin by reducing the opportunity cost of holding them.
The broader crypto market followed Bitcoin’s earlier gains, with XRP adding 1.46 percent to $1.91. Solana gained 2.35 percent to $126.63, while Cardano rose about 2.23 percent. Among meme tokens, Dogecoin jumped 2.98 percent.
