Bitcoin Stalls Below $90,000 as the Dollar Slumps and Gold Hits Fresh Records
Wall Street opened flat on Wednesday while markets awaited the Federal Reserve’s policy outlook. Bitcoin (BTC) briefly flirted with the $90,500 level before retracing to the $88,800‑$89,000 range, underscoring the cryptocurrency’s continued struggle to break out of a multi‑month consolidation zone.
Market backdrop
- U.S. equities: Major indexes held steady ahead of the Federal Open Market Committee (FOMC) meeting, where most analysts expect the Fed to leave interest rates unchanged. The focus will shift to Chair Jerome Powell’s remarks, which many view as a potential catalyst for market volatility.
- Gold: The precious metal surged past $5,300 per ounce during Asian trading, setting a new all‑time high and reinforcing its safe‑haven appeal amid geopolitical friction, notably U.S. military movements near Iran.
- U.S. dollar: The DXY posted its steepest decline in eight years, a move attributed in part to political commentary suggesting that a weaker dollar could boost exports, reduce the trade deficit, and lift asset prices.
Bitcoin’s price action
Data compiled from TradingView show BTC/USD testing a short‑term peak just above $90,500 before surrendering those gains. The price slid back to around $88,800, a level that sits near the lower boundary of the $86,000–$93,000 range that has defined Bitcoin’s market behavior since November 2025.
The rally was the first notable upward move since the cryptocurrency’s late‑2025 rally, which produced a roughly 13 % surge from the range low. By contrast, the current rebound added only about 4 %, prompting analysts to question whether the lower end of the range is losing its supportive strength.
Analyst commentary
- Michaël van de Poppe, a crypto trader and analyst, warned that the Fed’s upcoming speech could generate “fireworks” in the market, hinting at heightened volatility for both fiat and digital assets.
- EliZ, a market participant, observed that liquidity is now concentrated near the range’s extremes, meaning Bitcoin will eventually be forced to break either upward or downward as stop orders accumulate.
- Rekt Capital noted that the modest 4 % rally falls short of the prior 13 % bounce that followed a range‑low bounce, suggesting a potential weakening of support and an increased risk of a broader breakdown if the price cannot sustain a larger move.
Broader macro influences
The dollar’s slide appears linked to rhetoric from former President Donald Trump, who described the currency as a “yo‑yo” that could be swung in either direction. Some market observers argue that a softer dollar benefits U.S. export competitiveness, lowers borrowing costs, and indirectly lifts asset valuations—including crypto.
Simultaneously, heightened geopolitical tension—specifically U.S. military posturing toward Iran—has reinforced demand for safe‑haven assets such as gold and, to a lesser extent, Bitcoin. However, the cryptocurrency has yet to capture the upside momentum seen in precious metals.
Key takeaways
| Point | Implication |
|---|---|
| Price stalled below $90,000 | Bitcoin remains trapped in a $86k–$93k range; a decisive breakout is still pending. |
| Fed decision on hold | With interest‑rate policy likely unchanged, market direction will hinge on Powell’s comments. |
| Gold’s record high | Strength in gold underscores safe‑haven demand, which could spill over to crypto if risk sentiment stays low. |
| Dollar weakness | A depreciating U.S. dollar may eventually support higher crypto valuations, but the effect is not yet evident. |
| Trader sentiment | Market participants are growing impatient; liquidity at range extremes suggests a breakout could be forced soon. |
Outlook
Unless Bitcoin can generate a stronger upward thrust—ideally exceeding the previous 13 % range‑low bounce—the cryptocurrency may face renewed pressure from both profit‑taking and broader risk‑off sentiment. The next week’s price action will be closely tied to the Fed’s policy language and any further developments in the U.S.–Iran geopolitical narrative. Investors should monitor order‑flow near the $86k and $93k thresholds, as well as macro‑economic cues that could tip the balance in either direction.
Source: https://cointelegraph.com/news/bitcoin-price-fails-follow-gold-hits-5-3k-record-high?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
