Bitcoin traded below the $88,500 level in early week trade as crypto markets softened heading into a crucial stretch for global risk assets as investors braced for a Federal Reserve policy decision and a big slate of Big Tech earnings on Wednesday and Thursday.
The biggest cryptocurrency traded around $88,400 in Asian hours, modestly lower on the day and down about 4% over the past week, according to CoinGecko data. Ether hovered near $2,940, while solana, XRP and dogecoin also posted slight declines, extending a cautious tone across major tokens.
Silver pulled back from the day’s extremes in late US trade after logging its sharpest jump since 2008, while gold slipped from record highs after briefly topping $5,000 per ounce.
The white metal still ended Monday up 0.6%, even after a more than 14% intraday gain that briefly pushed it to a record above $117 a barrel. ounce – its biggest one-day swing since the global financial crisis.
Crypto, on the other hand, has struggled to participate in the broader macro trade. Bitcoin remains well below its October peak, even as falling real interest rates, a weaker dollar and rising geopolitical uncertainty have led to gains in stocks and precious metals.
The divergence has reinforced the view that crypto is currently trading less like a hedge and more like a high-beta asset sensitive to positioning and liquidity.
“Cryptocurrencies remain a lagging risk-sensitive asset class, lacking metals and the strongest global currencies,” Alex Kuptsikevich, FxPro chief market analyst, said in an email.
“The technical bearish picture remains relevant despite the gains of recent hours. BTC remains below its key moving average lines and has not attempted to break through the support of the last two months,” he added.
The Federal Reserve is widely expected to keep interest rates steady at its policy meeting on Wednesday, while earnings from several Magnificent Seven companies will test whether the AI-fueled stock rally can be extended. Both events are seen as potential catalysts for broader shifts in risk appetite, which could weigh on crypto markets.
Whether crypto can regain momentum may depend less on crypto-specific news and more on how markets react to Fed messages and Big Tech results. Until then, bitcoin appears to be stuck near current levels, drifting lower as investors wait for a clearer direction.
