Bitcoin hovered near $89,000 on Wednesday as broader markets rallied and the US dollar remained under pressure ahead of a closely watched Federal Reserve decision later in the day.
The major cryptocurrency was trading around $88,800 in Asian hours, a modest gain on the day after a stuttering start to the week. Ether rose about 2% to just below $3,000, while most major tokens posted small gains, according to CoinGecko data. Movements were measured rather than directional, reflecting a market waiting for clearer signals.
The calmer tone in crypto reflected a more stable backdrop elsewhere. Global stocks extended gains, with Asian shares hitting record highs and U.S. index futures pointing higher after the S&P 500 closed at a new high on Tuesday. Tech stocks led, helped by optimism around artificial intelligence spending and a big slate of megacap earnings expected this week.
The dollar steadied after falling to its weakest level since early 2022 earlier this week as investors weighed signals from the Trump administration that it is less concerned about a softer dollar. The weaker dollar has fueled strong gains in gold and silver, but crypto has so far lagged that trade.
“The dollar index fell to around 95.5, its weakest level in nearly four years, lowering the opportunity cost of holding risk assets and supporting BTC’s rally from below $88K to around $89.3K,” market analysts at crypto exchange CoinSwitch said in an email. “Downside pressure eased after BTC traded into and held the $86K-$87K zone where a tight cluster of leveraged long liquidations was likely triggered, reducing excess leverage and stabilizing short-term market structures.”
Traders are watching to see if a Fed pause — widely expected by markets — reinforces the recent bid for risk assets, or whether inflation and rate guidance prompts another reset.
At the same time, earnings from the so-called Magnificent Seven are expected to test confidence in the stock rally that has drawn capital away from crypto in recent months.
For now, bitcoin appears to be stuck in a narrow range holding ground rather than chasing the broader risk move. It suggests stabilization, not momentum, as markets enter a tight stretch of macro events.
