Bitcoin hovered near $89,000 on Wednesday as the broader market moved higher, while the dollar remained under pressure ahead of a closely watched Federal Reserve decision later in the day.
The largest cryptocurrency was trading around $88,800 during the Asian session, slightly higher on the day after a volatile start to the week. Ethereum rose about 2% to just under $3,000, while most major coins posted modest gains, according to CoinGecko. The moves are measured rather than directional, reflecting the market waiting for clearer signals.
The calm tone in the cryptocurrency space reflects a more stable backdrop elsewhere. Global stocks extended gains, with Asian shares hitting record highs and U.S. stock futures higher after the S&P 500 closed at a new high on Tuesday. Technology stocks led the gains, helped by optimism about artificial intelligence spending and a raft of big corporate earnings due this week.
The dollar stabilized after falling to its lowest level since early 2022 earlier this week, as investors weighed signals from the Trump administration that it was less concerned about a weaker dollar. A weaker U.S. dollar has fueled a strong rally in gold and silver, but cryptocurrencies have lagged gold and silver’s trading so far.
“The U.S. dollar index fell to around 95.5, its lowest level in nearly four years, reducing the opportunity cost of holding risky assets and supporting BTC’s rebound from below $88,000 to around $89,300,” market analysts at cryptocurrency exchange CoinSwitch said in an email. “After BTC entered and held $86,000 to 8.7 Downward pressure has eased beyond the $10,000 area, which could trigger intensive liquidation of leveraged longs, reducing excessive leverage and stabilizing short-term market structure.”
Traders are watching whether the Fed’s pause, widely expected, will intensify buying in risk assets in the near term, or whether guidance around inflation and interest rates could trigger another reset.
Meanwhile, gains from the so-called “Big Seven” are expected to test confidence in the stock market rally in recent months, which has driven money away from cryptocurrencies.
For now, Bitcoin appears to be stuck in a tight range, holding its ground rather than chasing broader risk moves. As the market enters a phase of intensive macro events, this indicates stability, rather than momentum.